Gibbs back in Enza chair after GPG offer wins approval

By PHILIPPA STEVENSON

Tony Gibbs vowed to regain the chairmanship of apple exporter Enza when he was ousted eight months ago.

Yesterday he told the Business Herald: "I'm back."

By close of trading yesterday, Gibbs' Guinness Peat Group's $1.20-a-share offer had been accepted by shareholders owning more than 55 per cent of Enza, and put Gibbs back in the box seat.

The 20 per cent shareholder launched the $57 million bid last month, opening with conditional acceptance from fellow corporate investor FR Partners, which also held 20 per cent of the company.

Gibbs' exile to the ranks of common director began last August at the hands of FR, whose head, Bill Birnie, took on the top Enza role.

It was an obvious sign that the successful storming of the pipfruit producer board citadel by GPG and FR had blown out.

A little more than a year earlier, the two had stealthily gained control of the $600 million near-monopoly exporter for around $6 million each, meeting the then grower shareholder qualification by leasing orchards.

The rift showed again at the company's February annual meeting when Gibbs tried unsuccessfully to depose Birnie and regain the chairmanship.

Yesterday, Enza said it would register acceptances of the GPG offer which - when taken with GPG's existing interest - would push its stake past a 50 per cent threshold.

They included FR's shares and accordingly GPG's bid was now unconditional, the company said.

Birnie and fellow FR director Stephen Norrie resigned.

A report by corporate restructurers Ferrier Hodgson had confirmed that the restructured Enza was "well positioned to compete in the deregulated market and we both wish its staff and suppliers all the best for the future".

Gibbs said the response to the offer, which valued Enza at around $72 million, was very satisfactory.

"It hasn't taken very long. I think the takeover has been very well received by growers."

Market observers had predicted GPG would get between 70 and 80 per cent of Enza's shares.

Growers had said the offer was very fair, very reasonable, said Gibbs, who earlier described the $1.20 a share as 114 per cent higher than Enza's share price before the annual meeting.

"There's been [grower] comments made like 'We've got to be sure you get across the line, Tony, because we know you'll bring stability to this industry'," Gibbs said.

As in the past, Gibbs' support has been strongest in the Nelson apple-growing area but he said he also had wonderful support from Hawkes Bay.