WITH the separation of managing director and major shareholder Mauro Balzarini and Giovanna Boventi Faroni's Wellard Group Holdings (WGH) and Wellard Limited last year, Wellard has confirmed this week that WGH must pay Wellard $15.8 million to finalise financial agreements between the two companies.
In a statement from Wellard on the ASX, Wellard detailed how the company's IPO Share separation settlement was required to deliver the Wellard balance sheet, as set out to potential shareholders in the Wellard's pre-IPO prospectus.
The initial Sperations Agreement required repayment within five days after the final amount was finalised.
WGH and an independent committee established by Wellard has made arrangements to pay the amount within a three month period.
The loan would give WGH time to repay the amount it owes Wellard in relation to the separation.
"WGH has advised the Committee that it is seeking to make arrangements, which will enable it to pay the adjustment amount within a three month period," Wellard stated.
"(It) intends to make such repayment without recourse to selling any of the Wellard shares it owns.
"The Committee has entered into negotiations with WGH seeking to agree to a three month loan."
In a statement on June 10, Wellard said at the time of release of Wellard's audit December 31, 2016 Half Year Finance Report on February 2016, the company estimated the outstanding net amount owing from WGH to be $14.7m, slightly slower than the $15.8 final amount.
Mr Balzarini was not part of the board committee overseeing the process, which is made up of independent non-executive director.
