Singapore soft drinks group Fraser & Neave Ltd said its proposed gratuity payment for the group“s non-executive directors after retirement failed to get shareholders“ approval.
F&N said in a statem…
Singapore soft drinks group Fraser & Neave Ltd said its proposed gratuity payment for the group“s non-executive directors after retirement failed to get shareholders“ approval. F&N said in a statement the resolution was not carried as it was supported by only 65% of its shareholders in an extraordinary meeting when at least 75% was required. The proposed gratuity payment had become a market focus as departing directors would cost the firm hundreds of thousands of dollars even though the firm said it was an established practice in both the private and public sectors. In an unrelated development, Coca-Cola Amatil executives are targeting Fraser & Neave, in a late February 2001 roadshow. They will be trying to ensure the 5.5% holder does not block the Australian soft drink company“s sale of its Philippines business to main shareholders, The Coca-Cola Company and San Miguel. After a buy-down of their holdings, the two big companies will give Coca-Cola Amatil $A 500 million cash. The deal is worth $A 2.25 billion. To succeed, the transaction needs endorsement from 75% of the minority shareholders. Before the roadshow, the Australian bottler“s managing director, David Kennedy, said minority shareholders“ attitude has been supportive. However, on its original $A 400 million investment in Coca-Cola Amatil, Fraser & Neave has lost about $A 115 million. Its attitude may not be as warm.