Balzarini's float payday
Wellard founder Mauro Balzarini will enjoy a $US650,000 ($900,000) annual package and be in line for bonuses after the planned float of his livestock export group.
And the prospectus for Wellard's $289 million capital raising reveals Mr Balzarini will collect about �,000 ($176,000) in annual rent on an office in his native Italy that he will be leasing to the Fremantle-based company until at least 2021.
If Mr Balzarini can raise the money he is hoping for over the next fortnight, he will have the opportunity to pay down debt of $500 million-plus that has cast doubt over the net value of his export and shipping empire.
The delayed float was last week pitched at the bottom end of a $1.39 to $1.68 range after a bookbuild carried out by Mr Balzarini's brokers.
It was oversubscribed and attracted strong interest from Australian institutions, Chinese interests operating out of Hong Kong and Europe
The prospectus reveals that WA boardroom regular and former Great Southern director David Griffiths will receive $200,000 a year to be Wellard chairman.
He will also get $25,000 for heading the nomination and remuneration committee, and $10,000 for being on Wellard's audit, risk and compliance committee.
_Fellow Perth business stalwart Sharon Warburton will receive $100,000 as a non-executive director and $25,000 extra for audit, risk and compliance committee, as well as $10,000 for sitting on the nomination and remuneration committee. _
The non-executive directors will be rounded out by Singapore-based shipping executive Philip Clausius, who will receive a total of $120,000 for being a director and sitting on two oversight committees.
Wellard finance director Greg Wheeler is also to sit on the listed company's board and will enjoy a package of $350,000-plus and, along with Mr Balzarini, be eligible for participation in an employee incentive plan to be developed after the float is completed.
However, the main game for Mr Balzarini will be the sharemarket success of Wellard given he will control more than 36 per cent of Wellard through his former corporate flagship WGH.
WGH will hold shares valued at $200 million based on the $1.39 float price. From the float proceeds, it is scheduled to receive $145 million that the prospectus says will be used to repay convertible notes.
Mr Balzarini said Wellard wanted to satisfy demand by expanding feedlot and shipping capacity, and partnering with customers in Asia in downstream processing.
He was in China last week for a board meeting with his partners in Wellao, the joint venture company backed by Hangzhou-based Fulida Group that has plans to build a cattle feedlot and abattoir.
It remains unclear if Fulida has taken a cornerstone stake in Wellard. Fulida has the option to convert an investment in WGH into shares worth up to $US27.5 million at any time before March 31.
_Standard Chartered Private Equity will also have a stake in Wellard. _
_SCPE provided WGH with a cash injection in 2011 through convertible notes, as did Mr Balzarini. _
_A big chunk of the money raised from the float will flow to WGH, where it is expected to be used to pay out the notes held by SCPE and Mr Balzarini. _
Wellard shares will begin trading on December 10. It is forecasting revenue of $607 million in 2016 and net profit after tax of $46.4 million.
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails