Third time lucky in fight for Richmond

By PAULA OLIVER

A long-running battle for control of the country's biggest meat exporter took a new turn yesterday, when South Island co-op PPCS launched a third attempt at gaining a stake in newly listed Richmond.

The latest twist in a three-year battle began when New Zealand's richest private farmer, multi-millionaire Peter Spencer, sold his 10 per cent stake in Richmond to PPCS on Wednesday.

PPCS, a Dunedin-based farmer co-operative, then successfully stood in the market yesterday, offering $3 a share, to take its stake up to 15 per cent.

Its move comes nearly a year after a group of small Hawkes Bay farmers formed a group known as Richhold to repel a hostile PPCS takeover attempt on Richmond.

After gaining a 34 per cent holding, PPCS was forced to sell the shares because it had failed to meet the notification requirements for buying them. It sold them last year to investment company Hawkes Bay Meat - led by former Brierley Investments lieutenants Paul Collins and Bruce Hancox.

The latest manoeuvres mean that together, PPCS and Hawkes Bay Meat hold more than half of Richmond. But PPCS chief executive Stewart Barnett yesterday said his group was not engaged in any dialogue with Hawkes Bay Meat.

"The sale process last year, when we had to dispose of our shares, was that it had to be to someone with no connections whatsoever, and that was precisely the case," he said.

Richmond chief executive John Loughlin yesterday said he did not see the combined stakes of Hawkes Bay Meat and PPCS as a concern.

"I suppose it possibly is [of concern] to some people. I don't particularly see it as hugely different.

"It wasn't all that long ago PPCS had 34 or 35 per cent, Peter Spencer had 10, and there was obviously quite close dialogue between them. When you've got a shareholder register that's reasonably open, it's very difficult to head off anybody that has 45 per cent anyway."

Since listing on the Stock Exchange in February, Richmond has posted a good half-year result and attracted some market attention.

Mr Loughlin said the company was always open to interest.

"Certainly the company is going well, and potentially that does encourage interest," he said. "I think it's relatively lowly valued, so that's a very attractive combination."

PPCS said it would be seeking representation on the Richmond board. The parcel of shares it bought from Mr Spencer carried one board seat - filled by Mr Spencer - and PPCS would look to begin discussions on that shortly.

PPCS chairman Jim Pringle yesterday portrayed the move as a friendly one, and said the hostility surrounding PPCS' previous investment had cost both companies opportunities for capturing synergies domestically and overseas.

He said that continued ownership of New Zealand meat assets in New Zealand hands - preferably those of farmers - was a major influence in the investment.