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2 Responses
Seeka shares traditionally trade at discount to NAV. A pointer that there are other objective of management and directors to shareholder welfare. The diversification policy was of no use when core packing business took a tumble. Growers and staff have access to cheap shares a cost to shareholders which does not flow through the P & L. NZSA assessment lacks understand of the business; some effort to get the opinion of members who might have an insight into the business would be better with most of report being WOKE.
Howard, we did comment last year (extensively) on the grower loyalty scheme, noted the (potential) 5.7% dilution for non-participating shareholders over the timeframe of the scheme. We definitely think that investors need to understand the scheme and its impact – but we’re also clear that there are some benefits through certainty of supply. As to the report being ‘woke’ (a word that is always an insult), we’re happy to see them disclosing information on what is a key risk to their business – and a risk that investors should be very mindful of. The storms a couple of yers ago highlight exactly why that is very relevant.
On the grower loyalty scheme, we commented last year as per the below:
“The structure of the share scheme is such that non-supplier shareholders are unable to participate in what is effectively a form of capital raise. However, as supplier shareholders are purchasing shares at 2024 values, there is limited loss of value for non-supplier shareholders (although there is some dilution). In effect, this is similar to a long-term incentive scheme that may operate for executives. On this basis, NZSA would have expected a clear disclosure of the measures (or measure groups), any applicable weightings and achievement targets associated with the allocation of purchase rights at the maturity of the scheme.
No such detail has been provided.
Despite this, we will vote undirected proxies IN FAVOUR of this resolution. However, we will continue to advocate for greater disclosure of the terms and conditions associated with the allocation of share purchase rights.”