03/03/2017 - 14:33

Hong Kong company onto Wellard register

03/03/2017 - 14:33

Bookmark

Save articles for future reference.

A Hong Kong-based company has joined the share register of live export business Wellard International just days after Holmes a Court family entity Heytesbury Holdings took a stake.

Hong Kong company onto Wellard register
There has been a fair bit of activity on Wellard's register in recent days. Mauro Balzarini leads the live exporter. Photo: Attila Csaszar

A Hong Kong-based company has joined the share register of live export business Wellard International just days after Paul Holmes a Court's wine and pastoral company Heytesbury Holdings took a stake.

Ever Blooming International bought 6.3 per cent of Wellard, or 25 million shares, in a transaction worth $5.1 million yesterday.

That entity appears to be held by a Hong Kong citizen, Bangcheng Dai, with an associated entity called Innovation Bloom.

It is not known if the company is connected to Hong Kong apparel manufacturer Everblooming International.

Earlier this week, Heytesbury bought a 9.6 per cent slice of Wellard, largely from Pakistan-based meat producer Tariq Butt subsidiary Butt Nominees, in a deal worth a reported $8 million. 

Butt emerged as a substantial shreholder in Wellard in August last year after paying around 40 cents a share, or $8 million for a 5 per cent stake.

It then kept buying until October when its holding peaked at 14.44 per cent, as the share price slid to as low as 23 cents.

In late January, Butt started to sell down its stake and is now understood to have quit Wellard altogether. 

It has been a rough year for Wellard, which listed in late 2015 after raising capital at $1.39 per share.

Bad news has included delayed shipping, profit downgrades and breached financial covenants, which have helped drive the share price lower.

Shares in Wellard were 6.5 per cent higher at 24.5 cents each at the close of trading today.

In September, Wellard's biggest shareholder, a company controlled by chief executive Mauro Balzarini, entered into an agreement with Fulida Group Holdings, a Chinese textile company, to sell 66.3 million Wellard shares representing 16.5 per cent of the company's stock, in order to extinguish a $US25 million debt.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options