Fast Richmond sale a snub to PPCS

By PHILIPPA STEVENSON agriculture editor

Richmond shareholders appear keen to sell to anyone but hostile bidder PPCS.

In just a few hours yesterday, Bernard Matthews subsidiary North Meats quickly took its holding from 4.3 per cent to 10.46 per cent at an average of about $3 a share.

It took PPCS all last week to boost its holding in its Hawkes Bay rival by 1 percentage point to 53.53 per cent under its $3.05 a share takeover bid.

PPCS' offer opened on January 23 but has been hamstrung by appeals to the High Court and Takeovers Panel.

Although its offer cleared both hurdles, the Dunedin co-operative needs 90 per cent of Richmond by February 26 to avoid losing voting rights on a 43 per cent holding. Notwithstanding further court appeals, North Meats' stake condemns PPCS to the loss of those rights.



North Meats' holding, combined with several other smaller stakes such as Graeme Lowe's 8.01 per cent, would also stop PPCS from achieving full ownership of Richmond.

Norman McRae, North Meats' chairman, said he was surprised at the speed of the $8.45 million purchase of 2.8 million shares, which was completed by about midday.

"There's an offer there at $3.05 and we bought at an average of $3."

The company had stopped buying for now, he said.

David Joll, managing director of Bernard Matthews UK, was expected to arrive at the weekend to spend a week in New Zealand.

The company sources lambs from Richmond and has cutting plants at Waipukurau and Gisborne.

McRae said Joll's visit had been scheduled some time ago but it was fortuitous that he would be in the country during this phase of the Richmond saga,

McRae could not discount that North Meats might increase its holding to 19.9 per cent - the maximum without mounting a takeover bid - but neither could he say whether the company would go that high.

He reiterated that North Meats did not want to take over Richmond.

"It has never been our wish, it isn't our wish and it will not be our wish to take the company over. Whether we go any further or not will depend on our discussions next week."

The company had to surmount obstacles, in particular the court case. But McRae said the situation was "totally muddied" by the appeals to the Appeal Court, "which makes it very difficult to make a sound commercial decision".

If either of Justice William Young's decision were altered it would totally change the picture, he said. An earlier date for the appeal hearing than April would help.

McRae said North Meats was not working with any other party but was concerned to preserve its relationship with Richmond.

Richmond shares closed at $3 yesterday on trading of 2.8 million shares for $8.45 million.