THE Kailis name may be an integral part of the Western Australian business scene, but it has also been synonymous with privately held, family businesses.
This week, though, marks the second time this month that members of this extended family have moved to offer equity to outside shareholders.
The latest move is by Kailis Organic Olive Groves, which is seeking up to $30 million to fund the acquisition of the olive assets of the collapsed Great Southern agribusiness group, which would be merged into the group’s existing olive production company.
This follows news earlier in April that MG Kailis Group’s aquaculture venture, Lobster Harvest, was seeking $4 million in seed capital to commercialise its hatchery ahead of a planned ASX listing in the next 12 months.
Kailis Organic Olives is led by Mark Kailis, son of Peter, the founder of the Red Rooster fast food chain.
Mark Kailis, who ran the family’s Baldivis Estate Wines before it was sold to Palandri a decade ago, said the funds would be used to buy the Great Southern assets for $19.7 million and as working capital for the group, which intends to create a fully integrated organic olive group of global significance.
Kailis Organic Olives has managed the 1,795 hectares of olives for Great Southern for several years, having sold some of the groves to the former listed company in 2005.
Under the proposed raising, related parties, which include close relatives linked to the Kailis & France food business, the Kailis Bros seafood and logistics business and the D’Orsogna family, will represent about 25 per cent of the equity if the raising succeeds.
Unlike the Lobster Harvest plan, Kailis Organic Olives does not intend to list on the stock market.
MG Kailis is an unrelated entity, headed by Alex Kailis, third cousin to Mark.
Lobster Harvest was established as a joint venture with Singaporean investors based around MG Kailis’ long experience in growing lobster from juveniles. From that the business has developed hatchery technology it claims is the first capable of breeding lobster in captivity
