Irish company Dawn Meats has increased its proposed investment from $250 million to $270m, following stronger-than-expected year-end results from Alliance.
Dawn Meats’ proposed 65 percent stake in Alliance remained unchanged despite the higher investment.
Alliance chair Mark Wynne said as part of negotiations in July, the co-op had to commit to a year-end profit and net debt target.
The co-op’s unaudited profit projection of $18m to $24m was above target prompting the extra cash, which would be distributed through a dividend.
“So we both agreed on $250 million for 65 percent, but agreed a mechanism that said if there’s a variance in favour of Alliance, Dawn will top up.
“And if there’s a variance in favour of Dawn, in other words, we underperform on our target, then Alliance will top up Dawn.”
Over the last two weeks Alliance representatives had travelled the country talking with shareholders about the proposal.
‘Please vote’
Wynne said there had been some honest and tough conversations.
“[I’m] still pretty nervous.
“We’ve got four and a bit days so we have a special general meeting in Invercargill on Monday, on the 20th and the meeting will open at 11am, voting will close 11:45.
“And then Elections NZ and KPMG will go away and count and verify, and announce the result the following day.
“So our key message to everyone is please consider the proposal and the alternative that you see fit, vote accordingly, but the main thing is please vote.”
He said they’d been upfront about Alliance’s finances, with $188m in debt due by December 19.
Wynne said after exploring all options over the past two years, only Dawn Meats met the scale and timing needed.
Shareholders were making a decision Wynne called a once-in-a-generation choice for farmers.
