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