Dawn Meats Sweetens Bid For Alliance Group

1 month ago

A last ballot tally by Alliance Group's husbandman shareholders connected whether to judge nan connection is owed adjacent week.

Ireland’s Dawn Meats has sweetened its projected mostly stock bid for New Zealand’s Alliance Group nether a antecedently agreed accommodation mechanism.

Dawn Meats confirmed successful August it was seeking to return a 65% liking successful nan nutrient cooperative for NZ$250m ($143.4m today).

However, nether a proviso that Alliance Group meet its full-year profit and indebtedness targets, it was agreed Dawn Meats would salary an further NZ$20-25m.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to scope engaged professionals crossed 36 starring media platforms.

Find retired much

That information has now been met, Dawn Meats confirmed, arsenic Alliance Group’s profit estimate of NZ$18-24m has exceeded its forecast, while nett indebtedness has travel successful little than expected.

The further NZ$20-25m will beryllium paid and distributed done a dividend costs to cooperative members station completion of nan transaction, which has to beryllium approved by Alliance Group’s husbandman shareholders.

A last ballot tally connected whether to o.k. nan woody is expected connected Monday aliases Tuesday of adjacent week, Dawn Meats clarified coming (16 October).

Meanwhile, NZ$40m successful loyalty payments had already been agreed, meaning a full dividend costs of astir NZ$60m.

In September, Alliance Group revealed that it faced nan consequence of “potential insolvency” if its shareholders rejected Dawn Meats’ bid to get nan mostly stake.

GlobalData Strategic Intelligence

Don’t fto argumentation changes drawback you disconnected guard. Stay proactive pinch real-time information and master analysis.

By GlobalData

In a connection connected 18 September, Alliance Group chair Mark Wynne urged shareholders to judge nan offer, saying “the committee has unanimously recommended” nan proposal.

According to Wynne, Alliance Group had “implemented important affirmative change” complete nan past 2 years nether a revised strategy, and it is now a “leaner, fitter and stronger business”.

Should nan shareholders determine against accepting nan Dawn Meats’ bid, Alliance Group suggested its options are limited.

The co-op said it could see plus sales, tract closures, and costs reductions. Alternatively, it mightiness activity to raise superior from shareholders aliases different investors, aliases spell into insolvency.

Included successful nan strategy booklet was a study from independent advisor Northington Partners, which suggested that nan connection from Dawn Meats was nan “best” and nan “only one” to meet nan co-op’s strategical and financial needs.

Just Food has asked Alliance Group for an update connected its latest income and profit figures up of adjacent week’s shareholder ballot decision.

Alliance Group, owned by astir 4,300 shareholders, reported gross of NZ$1.8bn successful 2024 but posted a nonaccomplishment aft taxation of NZ$95.8m.

Just Food Excellence Awards - The Benefits of Entering

Gain nan nickname you deserve! The Just Food Excellence Awards observe innovation, leadership, and impact. By entering, you showcase your achievements, elevate your manufacture profile, and position yourself among apical leaders driving nutrient manufacture advancements. Don’t miss your chance to guidelines out—submit your introduction today!

Nominate Now