Freedom Foods to stay in familyâs hands after rescue A NSW family will remain in tight control of Freedom Foods Group after a $265-million capital raising.
Business by Peter Hemphill
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Subscriber only NSW s Perich family will remain in effective control of Freedom Foods Group, after raising $265 million of capital to rescue the dairy and plant-based foods manufacturer from financial ruin. The family s Arrovest Pty Ltd has taken $126.1 million of the subordinated convertible notes, a decrease on its original commitment of $135 million. The $8.9 million difference was taken up in overscriptions by local and overseas investors, which eventually took $138.9 million of the convertible notes.
Freedom Foods recap plan secured after options, notes approved
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Freedom Food Group’s shareholders approved all 13 resolutions at an extraordinary meeting in Sydney on Tuesday, putting the final piece of restructuring in place after a horror year.
Freedom Foods chairman Genevieve Gregor has pulled off a highly complex recapitalisation.
Renee Nowytarger
On Monday Freedom Foods told the market it had received $8.9 million in oversubscriptions under the wholesale offer from several special situation and credit funds, which it did not identify.
This allowed the key shareholder Perich family’s investment vehicle, Arrovest, to scale back its minimum commitment to $126.1 million through the placement, while existing and new investors have committed $138.9 million through the notes issues by way of $130 million from the wholesale offer and the balance of $8.9 million under the existing placement capacity.
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Perich the thought: notes issue oversubscribed
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Freedom Foods Group’s main backers, the Perich family, will pump less money than anticipated into the company’s oversubscribed capital raising after increasing the size of the wholesale notes offer to $138.9 million from $130 million.
Freedom Foods Group’s main backer, Tony Perich, will wind back the committed capital under the notes issue.
Rob Homer
The stock resumed trading on Monday, gaining 2¢ to 45¢ after the UHT milk and plant-based drinks maker said it received $8.9 million in oversubscriptions under the wholesale offer from a number of domestic and international funds, which it did not identify.
Can slower-grown breeds work in the UK poultry market? >More in
For decades the poultry industry has striven to improve efficiencies, driven by consumer demand for lower prices.
Fast-growing chickens with high feed intakes have been required – but that is starting to change.
Slower-grown breeds currently comprise about 5% of the UK market, whereas in the Netherlands they account for 100% of the retail market.
While experts do not expect uptake in the UK to match the Dutch level, slower grown birds could make up 10-20% of the market within the next five years.
What are the difficulties?
According to Danny Johnson, commercial director at feed and nutrition expert ABN, consumers are increasingly focusing on higher welfare, slower growing birds, and retailers will push suppliers to meet those demands.