The Takeovers Panel has defended its decision giving key Kerifresh shareholders the chance to buy back shares they have been forced to auction.
Alan and Helen Thompson, and Hamish and Jonathan McHardy were forced to sell a 23 per cent stake in the citrus grower after the panel
ruled they were associates with a combined stake over 20 per cent, and had breached the Takeovers Code.
They will be able to bid for the shares but will have to make a full takeover offer once they get over the 20 per cent threshold.
The solution was criticised as a joke by Tony Gibbs, chairman of Turners & Growers, which is taking court action and suspended its $2 a share takeover bid after it alleged breaches of the Takeover Code.
"I think what's very disappointing in this is that the Takeovers Panel is basically saying you can breach the code, you can be very naughty, you can be found guilty and then we'll just make you sell your shares and then we'll give you the proceeds back," Gibbs told the Herald last week.
Panel chairman David Jones said the decision was consistent with the panel's other rulings.
"Turners & Growers fails to recognise that we can't impose the financial penalties or the forfeiture penalties that he's actually crying out for - only a court can do that. All we can do is try and get the parties to agree on a process to address how we think it best should be done," Jones said.
Turners & Growers had not taken part in trying to find a solution, and was seeking the forfeiture of the shares, meaning they would be cancelled and would increase Turners & Growers' stake, Jones said. That would give a commercial advantage.
Turners & Growers could have taken part in the Takeovers Panel process, and continued with court proceedings. Hamish McHardy has indicated he will bid for the shares, but Turners & Growers has not signalled its intentions.
- NZPA
