Milk processor Hochdorf faces fateful Annual General Meeting
Published: Tuesday, May 14th 2024, 11:10
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The ailing milk processor Hochdorf is set to hold a groundbreaking Annual General Meeting on Wednesday. The new major Italian shareholder Newlat wants to replace the entire Board of Directors. The dairy farmers of Central Switzerland are against this.
What initially looked like a normal Annual General Meeting turned out to be a real thriller with a last-minute proposal from the recently acquired Italian Newlat Group.
Newlat wants nothing less than to replace the entire Board of Directors with its own candidates. These candidates will then implement a "radical restructuring" at Hochdorf and bring about a change for the better.
Hochdorf has been in a bad way for some time. In particular, the company is burdened by high debts as a result of bad investments. Hochdorf therefore recently considered selling its operating subsidiary Swiss Nutrition (HSN), as a sale of the entire group, including debt, was considered unlikely.
In the event of such a sale, however, the existing shareholders are threatened with a total loss. This plan in particular is strongly opposed by Newlat.
Almost only Italians suggested
Specifically, Newlat is proposing four Italian citizens who are still unknown in Switzerland for election to the Board of Directors. Only the Swiss-Brazilian dual citizen Helmut Bösiger has proven knowledge of the Swiss market. In addition, Angelo Mastrolia, who also serves as Executive Chairman of Newlat, is to be elected Chairman of the Board of Directors of Hochdorf.
In contrast, Hochdorf had put the re-election of all current members of the Board of Directors on the agenda. Jürg Oleas is to be re-elected as Chairman.
Vote still open
Newlat is dependent on broad support from existing shareholders for the success of its proposal, as Newlat currently only holds just under 10 percent of the voting rights.
In addition, major shareholder ZMP has already expressed its confidence in the current Board of Directors, meaning that 18% of votes against have already been cast. As a producer organization, ZMP represents the interests of dairy farmers in Central Switzerland.
Tunisian entrepreneur Amir Mechria, who recently reported a stake of around 20 percent, did not wish to comment on his voting behavior when asked. The decision will therefore only be made at the AGM itself.
Newlat also intends to present its so-called "revitalization programme" at this time. This envisages investments of up to CHF 80 million, as Newlat CEO Mastrolia told the news agency AWP. However, he did not specify where this money would come from.
Newlat plans still unclear
What Newlat plans to do with Hochdorf afterwards is still unclear. However, Newlat is aiming for a long-term commitment to Hochdorf, Mastrolia emphasized just over a week ago. At the same time, he was open to various options regarding Newlat's future involvement in Hochdorf, including a complete takeover.
In terms of its focus, Hochdorf would fit well into Newlat's existing portfolio. Newlat generates around a third of its annual turnover of almost 800 million euros with dairy products. However, the company is not yet operationally active in Switzerland. However, Newlat boss Mastrolia says he has lived in Ticino for more than 20 years. The Newlat Group, through which he controls the majority of the company, is also based there.
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