SFF shareholders back capital restructure plan

Silver Fern Farms shareholders have voted in favour of a restructure, backing a management plan to raise up to $128 million to allow the meat processor to modernise and match the demands of choosy European supermarkets reports Stuff. In recent weeks the bosses of New Zealand's biggest meat co-operative have been travelling to sell its capital restructuring scheme to farmers.The Dunedin-based co-op hopes to raise up to $128m and consolidate shares into one more easily tradeable class. Yesterday, shareholders took a step toward implementation of the "market led strategy" by voting in favour of important constitutional changes, with 76.46 per cent support, SFF said. About 4500 suppliers were eligible to decide on the plan, and 42.24 per cent of them voted. SFF plans to go its 20,000 shareholders to raise more than $80m and up to $128m. It has $189m of debt. Chairman Eoin Garden said the result was a clear endorsement of the need to revamp the co-op's capital and governance structure in support of its long-term strategy. Under the plan farmer shareholders will swap their rebate shares and supplier investment shares for new ordinary shares which can be traded on the Unlisted exchange. The outcome demonstrated farmers wanted new thinking, new ideas and were prepared for change, Mr Garden said. "It is a credit to our shareholders that they understand the need for change by demonstrating real leadership and commitment to the progressive strategies their company is adopting." The plan will see SFF's board reduced from 12 to eight members, including five farmer-elected directors and three independent directors, and the removal of a ward system which gave regional representation.