Veritas shareholders vote in favour of Mad Butcher sale
By Rebecca Howard
March 16 (BusinessDesk) - Veritas Investments shareholders voted to sell the business and assets of the Mad Butcher franchisor to its chief executive Michael Morton for $8 million at a special meeting held today in Auckland.
"Shareholders have today ratified, confirmed and approved the sale of the business and assets of the Mad Butcher franchisor business to Yogg Ltd, and authorised the independent directors to take all actions, do all things and execute all necessary documents and agreements necessary or considered by them to be expedient to give effect to the Mad Butcher sale transaction," Veritas said in a statement.
Yogg is owned by interests associated with Morton, who is chief executive of the Mad Butcher business, director of Veritas and MBL, and trustee and beneficiary of the largest shareholder in Veritas.
The resolution was decided by poll, with 98.4 percent of the shareholders, who were entitled to vote and voting on the question, voting in favour.
Completion of the sale is expected to occur on March 23, Veritas said.
Prior to the meeting, independent adviser Simmons Corporate Finance said the $8 million price tag falls within its estimated value of between $7.2 million and $9.4 million and that the transaction is fair to shareholders not associated with Morton.
Veritas has been selling assets to repay debt it took on to buy a series of businesses since embarking on a strategy of building a food and beverage business with the backdoor listing of the Mad Butcher business five years ago. The company paid $40 million for Mad Butcher, half in cash and the rest in scrip, raising $25 million to help fund the deal.
Veritas previously said if approved, the proceeds will go to repaying $27 million owed to ANZ Bank New Zealand and leave the Better Bar Co as Veritas's remaining asset.
The shares last traded at 4 cents and have shed 20 percent so far this year.