Wellard Limited founder Mauro Balzarini's deep connections to the livestock shipping company have finally ended with his own creditors picking up his family's 12.75 per cent remaining shareholding in the business he once ran.
The creditors, associated with Mr Balzarini's own private interests, have been allowed to take possession of most of the restricted shares held by Mr Balzarini's family company Wellard Holdings Group, which was subject to "key man" obligations until Wellard Limited's $62 million debt to Italian financier Banca Intesa Sanpaolo was repaid.
The key man ruling had meant Mr Balzarini, who was also chief executive officer of the Australian-listed shipping business until he was deposed by his board last year, was forced to keep a minimum 12.5pc shareholding in the Fremantle-based Wellard.
Last month's $89.8m sale of Wellard's biggest and newest ship Ocean Shearer to Kuwaiti Livestock Transport and Trading allowed the company to pay off the debt.
Mr Balzarini's shares have subsequently transferred to parties involved with WHG, completing an old agreement which will now see his family holding company wound up.
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Wellard Holdings floated Australia's biggest live cattle and sheep export business as Wellard Limited on the Australian Securities Exchange in late 2015 following a $300 million capital raising.
Listing Wellard at about $1.40 a share, with a market capitalisation of $556m, Mr Balzarini retained more than a third of what had been his family's successful live export company with related Western Australian assets in stockfeed and meat processing.
However, despite its optimistic market prospects, Wellard's share price was sinking below 70 cents by April 2016 and continued a steady slide to lows of 23c by mid last year.
Debt ballooned while he was at the helm and the live exporter never managed to make a profit as a listed entity during his tenure as CEO.
I can now focus my attentions on new ventures including the design of a new generation of livestock carriers
- Mauro Balzarini
Mr Balzarini, now living in New Zealand, said his share exit was the final stage in his departure from the Wellard name and from all his Australian interests, which once included significant real estate and farming holdings.
"I can now focus my attentions on new ventures including the design of a new generation of livestock carriers," he said.
"That project has been severely impacted by the COVID-19 outbreak in Italy but we are intending to resume work as soon as possible."
Meanwhile, Wellard's current executive chairman, John Klepec noted last month how coronavirus had prompted countries with food security concerns or fresh meat requirements to be increasingly reliant on livestock shipments after global airlines shut down operations, delaying imports of chilled meat.
"At present, all of our fleet are in demand by Australian exporters," he said.
"While COVID-19 travel restrictions are creating some logistics issues with respect to stockmen and women, crew and veterinarians, we have been able to manage these to date."
For the past month Wellard shares have traded in the 4.1c to 4.5c range, having recovered from a slide to 3.5c in March.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
