another great southern 10% scam, page-3

A copy of GRoberts on GTP forum H/C,and it has full recourse(sic) in light of what SDE has posted


A very interesting article appeared in the Financial Review from Wednesday (17/6).

It starts -
"Great Southern offered large investors in its cattle schemes secret financial incentives to change their votes to support a deal that was a last-ditch effort to save the embattled agribusiness company. One significant investor was offered a lower interest rate on his loans if he agreed to revoke his vote on two resolutions that were part of the controversial Project Transform plan, which involved Great Southern swapping cattle scheme lots fir shares in the ASX-listed parent."

Further on in the article is this -
"The AFR understands that Great Southern's state managers were told to lobby the larger individual grower investors by the executive team, led by managing director Cameron Rhodes. One source from inside the company said those who had loans were offered financial incentives, such as lower interest rates, interest only, or longer interest-only periods, in exchange for changing their votes. Often, if Great Southern was unable to contact the investor directly, the incentives were offered to the financial advisors, in an effort to get them to persuade their clients to change their votes."

This information goes a long way to explaining how the cattle vote got across the line. It was hardly a compelling offer and I'm sure I wouldn't have been the only one who has wondered over these past few months if there were brown paper bags swapped to get the vote across the line.

This also taints the financial advisors who were strongly advocating their clients to swap their interests for shares. In some cases these advisors were looking after their own interests as much as anyone elses and have badly let down those who trusted them.