Veritas shareholders back butcher’s cut

Veritas Investments shareholders have voted to sell the business and assets of the Mad Butcher franchisor to its chief executive Michael Morton for $8 million.

“Shareholders have today [Friday] 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 per cent of shareholders entitled to vote voting in favour.

Completion of the sale is expected to occur on March 23, Veritas said.

Before the meeting, independent adviser Simmons Corporate Finance said the $8m pricetag fell within its estimated value of between $7.2m and $9.4m and that the transaction was 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 $40m for Mad Butcher, half in cash and the rest in scrip, raising $25m to help fund the deal.

Veritas had said if approved, the proceeds would go to repaying $27m owed to ANZ New Zealand and leave the Better Bar Co as Veritas’ remaining asset.