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 to stay in family s hands after rescue
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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.
Perich family to support Freedom Foods recap after Oaktree talks end
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The Perich familyâs pledge to invest up to $200 million in troubled Freedom Foods after recapitalisation negotiations with a hedge fund fizzled did little to quell investor concerns at an uneasy annual meeting for the troubled milk and plant-based foods manufacturer.
Tony Perichâs family vehicle Arrovest will invest up to $200 million in the recapitalistion.Â
Jacky Ghossein
Ahead of the meeting,
AFR Weekend revealed Oaktree Capital was no longer in discussions with the group, which has been suspended since last year after the departure of its chief executive and chief financial officer and revelations it had miscounted its cereals and UHT stock and misallocated expenses, forcing write-downs of $591.5 million. An extensive accounting report has also raised the prospect of fraud.
AGL issues profit warning
By Lucy Battersby
AGL shares have dropped 77¢ to a nine-year low of $12.45 this afternoon, a fall of 5.7 per cent, after the company lowered its profit forecast. It was now expecting underlying full year post-tax profit to be between $500 million and $580 million rather than between $560 million and $660 million.
The profit downgrade was due to a fire at the Liddell Power Station in New South Wales last Friday. A fire started in the generator transformer of Unit 3 during an oil cooler filter replacement. The unit was unlikely to start working gain until March 2021 and the company expects the impact of the outage and replacing the transformer to be about $25 million.
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