Bellamy’s to reveal new Fonterra contract

There is no plan to raise equity at this stage and the market statement will instead update the news from the Fonterra talks and the ­financial position of Bellamy’s and its future prospects.
Fonterra is understood to have been supportive of restructuring its relationship with the Tasmania-based Bellamy’s without hurting the viability of its own plant at Darnum in Victoria.
Bellamy’s chief executive Laura McBain has long had a good relationship with former Fonterra Australia boss Judith Swales, who is now the New Zealand-based co-operative’s chief operating officer for velocity and innovation.
It comes amid growing concerns about the financial management of Bellamy’s and after a rebellion by dissident shareholders sparked by a profit warning issued by the company last month that saw its share price cut in half. The hefty spending by Bellamy’s on consultants has also been questioned by the company’s ­directors.
The consulting payments, which are not separately disclosed in the company’s latest annual ­report, went to several firms ­including Bain & Co.
Prominent shareholder Jan Cameron has raised the possibility of a cash raising by Bellamy’s but it is understood that while one may be possible down the track, at this stage there are no plans to discuss a raising in the update.
The main focus on supplier talks has been Fonterra, with Bega kept in the background.
Bellamy’s wants to release a statement on its finances before Friday’s deadline for the lifting of the suspension of trading on its shares.
Bellamy’s is due to hold a meeting by late next month on a push by the company’s 15 per cent shareholder, the Black Prince Foundation, to dump four non-executive directors and replace them with Ms Cameron, Hong Kong-based businessman Chan Wai-Chan, Vaughan Webber and Rodd Peters.
Ms Cameron has said Bellamy’s was not in danger of running out of cash and had not touched a banking facility with HSBC worth about $40m. But the turmoil could affect the company’s ability to increase the size of its HSBC facility to meet a short-term cash-flow squeeze.
 
Source: TheAustralian
Link: http://www.theaustralian.com.au/business/companies/bellamys-to-reveal-new-fonterra-contract/news-story/b07379f4509c42368ef5563104ab1227