Silver Fern chiefs want power to lift cap

Directors in the Silver Fern Farms meat co-operative plan to give themselves powers to lift the "5 per cent cap" they have promised farmers on shareholdings in the tradeable shares the former PPCS wants to issue.

Farmers were yesterday given details of the proposal to swap their rebate shares and supplier investment shares for new "ordinary" shares which will be tradeable.

Members of the co-operative have been promised a 2:1 cash issue and a 1:4 bonus issue, and been told farmer control of the company will be protected by a 5 per cent cap on any individual stake.

But a report from an adviser to the company, the Grant Samuel advisory group - in the appendix to the "information pack" given to shareholders yesterday - disclosed "the board may elect to allow any shareholder to increase their shareholding above the prescribed 5 per cent".

Noting that the proposed new constitution for the company confers significant additional powers to the board, Grant Samuel said the board may establish the issue price of ordinary shares and will have discretion over whether shares are redeemed.

In the event a major transaction - greater than 20 per cent of the shares - was contemplated both farmers and non-farmer investors among the existing shareholders would be given an opportunity to vote on it.

A special meeting on July 30 will put the proposals to a vote.

- NZPA