Focus on Cameron deals
Multi-millionaire’s ‘share warehousing’ to disguise Bellamy’s interest
JAN Cameron transferred loans through a web of offshore companies to allow her to become the major shareholder of Bellamy’s, the prosecution at her court hearing has alleged.
The hearing for the Tasmanian businesswoman is under way, with Ms Cameron contesting allegations by the Australian Securities and Investments Commission she failed to disclose information about millions of shares in the Bellamy’s food group.
Janet Heather Cameron, 68, appeared in the Hobart Magistrates Court for a hearing on Tuesday.
At a previous court appearance, the multi-millionaire founder of retail chain Kathmandu had pleaded not guilty before Deputy Chief Magistrate Michael Daly to making a false or misleading statement and failing to give information about substantial holdings in Bellamy’s.
Counsel for the prosecution Lincoln Crowley told the court Ms Cameron had allegedly undertaken “share warehousing” – a process where people held “interest in a substantial holding in shares of a company, but they themselves don’t hold it in their name directly”.
Mr Crowley said she had stepped down as the director for Tasmania Pure Foods, which was later renamed Bellamy’s, amid concern her ongoing interest in the company could impact shareholders.
He said the prosecution alleged Ms Cameron established Bicheno Investments and Malaysian company LENGKAP “as a part of the defendant’s wish and purpose for ultimately holding the interest in the Bellamy’s shares”.
Mr Crowley said Bicheno Investments, a company which she owned, allegedly loaned $23m from the sale of Bellamy’s shares to LENGKAP through a convertible bond, giving Bicheno some influence over LENGKAP’s decision making.
He said LENGKAP allegedly loaned $14m to Black Prince Private Foundation, which was established in Curacao in the Caribbean. That money then funded the acquisition of Bellamy’s shares.
He said the prosecution alleged LENGKAP’s loan to Bellamy’s came with a provision requiring Black Prince to enter a shareholder agreement.
“This is a means by which LENGKAP has power or control over the Black Prince,” Mr Crowley said.
“LENGKAP itself is controlled by Ms Cameron.”
Black Prince bought $14m in Bellamy’s voting shares when the company was listed on the Australian Stock Exchange in August 2014.
“Black Prince was the largest shareholder of Bellamy’s by virtue of that holding,” Mr Crowley said.
He said an initial substantial shareholding notice was required to be lodged if a person attained a substantial holding in company shares.
He said the prosecution must prove Ms Cameron or her associates had a relevant interest in the voting shares of Bellamy’s through Black Prince, and must prove she failed to disclose information – including the names of her associates and the details of their holding – within two business days of her becoming aware of the details.
The hearing will continue on Wednesday.