Alliance not commenting on Dawn stake
Alliance Group is refusing to comment on speculation Irish meat company Dawn Meats is taking a majority stake in the farmer-owned co-operative.
Last year, Alliance appointed Craigs Investment Partners to explore external capital-raising options after posting a full-year after-tax loss of $95.8 million for the year ending September 30, which followed a $70.1 million loss the previous year.
It is understood shareholders would be given an update on the capital raise this month ahead of a series of roadshow meetings followed by a formal shareholder vote in the next few months.
Chairman Mark Wynne reiterated the company would not be commenting on any market speculation.
Its goal was to secure more than $200 million to strengthen its balance sheet and provide a much more stable financial foundation for the business.
"Because of the commercial sensitivities involved and the confidentiality agreements now in place, we are limited in how much we can share."
Alliance had the full support of its banking syndicate with continued financing and there was confidence in its performance, in the capital raise process, the investor offers and its farmer-shareholders, he said.
In April last year, the company announced a capital raise from then cash-strapped shareholders, saying it believed funding in the range of $100 million to $150 million, which was indicative only, over the next few years might be required.
In September it halved the share deductions from farmer shareholders, saying it listened to concerns the level was too high for some in the current economic environment.
Mr Wynne has previously said there were three structure options for Alliance's future — remain 100% farmer-owned, become some kind of joint venture, or shareholders could decide to sell the business.
sally.rae@odt.co.nz
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