In his first public comments since leaving Murray Goulburn on the same day the cuts were made, Gary Helou said he «did not mislead» in the lead-up to the April 2016 announcement.
He was giving evidence via telephone to a Senate inquiry into the dairy industry in Perth today.
Murray Goulburn made a partial listing on the Australian Stock Exchange (ASX) in 2015, raising $500 million in the process.
The company subsequently released its half-year results in February 2016, two months before cutting farmer milk prices.
In the wake of the cuts, the corporate watchdog, the Australian Securities and Investment Commission, confirmed it would investigate Murray Goulburn.
It said it will probe the disclosures Murray Goulburn made to the ASX between releasing its half-year results and announcing the cuts.
Senators probe claims of misled investors
Senator Chris Ketter today asked Mr Helou if he had been approached by authorities in relation to allegations that Murray Goulburn had misled investors in its prospectus.
«I don’t know whether I can comment on that,» he replied.
Senator Nick Xenophon interjected to say Mr Helou’s evidence was under parliamentary privilege and unable to be used in future proceedings.
«I always cooperate with authorities, but I am not so sure I’m in a position to comment on this matter,» Mr Helou said, when he was again asked if he had been approached by authorities.
Senator Glenn Sterle said the inquiry could go ‘in camera’, where the evidence would be private, if that was what it would take for Mr Helou to respond to the question.
Mr Helou then paused and said: «I have not been approached».
«You have not been approached by authorities in relation to those allegations that investors were misled in relation to the prospectus,» Senator Ketter asked.
«No,» Mr Helou replied.
Senator Ketter then asked Mr Helou how he would respond to the allegations.
«We didn’t mislead. I didn’t mislead. We acted on the best information that was available to us at the time,» Mr Helou said.
«There were extraordinary, external deregulation events in China in early April 2016.
«This is the cross-border e-commerce announcement that removed our two bestselling lines from the e-commerce platform that were driving our profitability and mitigation against commodity prices.
«No one could foresee that external event. We acted as soon as we had information.»
Standing by dairy outlook
Murray Goulburn had been paying its farmers $5.60 per kilogram of milk solids before it announced the retrospective cuts.
Mr Helou was asked why 48 hours before the cuts were announced he told a food forum that $6 was an attainable price.
«I didn’t say that. I said the $6 is an aspiration number, is a target number,» he responded.
Mr Helou said he believed $6 was attainable even during the commodity downturn «if you have the right business model in multiple markets».
He said Murray Goulburn had been open about the decline in global dairy commodity prices and that Murray Goulburn believed sales of its value-added products like nutritional powders and cheese would be strong enough to offset the commodity downturn.
Senator Xenophon appeared frustrated when Mr Helou, after repeated questioning, refused to accept that his comments about a $6 price related to the 2015-16 financial year.
The Senate committee has already held public hearings in Melbourne, Brisbane and Canberra.
It will next visit Burnie, in Tasmania, and Shepparton, in Victoria.
Mr Helou said as he lived in New South Wales he would be willing to present in person should the committee request him to do so.
Source: ABC
Link: http://www.abc.net.au/news/2017-02-01/gary-helou-senate-murray-goulburn/8230688
