Wrightson's chief claims dividend

By LIAM DANN

His future at Wrightson remains uncertain but managing director Alan Freeth wasn't about to miss out on the special dividend generated by this week's hostile takeover.

Freeth exercised nearly 850,000 options yesterday, setting cynical tongues wagging.

But he has not cashed up the $1.3 million worth of shares and says there is no great mystery behind his timing.

"I'm not trading shares. I just want my dividend," he said. "With options I don't get the dividend. It's about as simple as it gets."

Freeth should net about $76,000 from the 9c-a-share dividend when it is paid out next week.

He should also do very nicely on his shares - whatever happens to them with Craig Norgate and Rural Portfolio Investments in charge. His exercise price for the majority of the shares was just 57c. A second parcel was exercised at $1.13. The shares closed last night at $1.53, giving Freeth a paper profit of $601,000.

Freeth's decision to exercise options and sell $600,000 worth of shares last October was highlighted by Norgate during the takeover battle.

After RPI's victory last Wednesday, most pundits are picking that Freeth and Wrightson chairman John Palmer will lose their posts.

Asked if he had any indication about his future Freeth said: "Nothing I can comment on."

According to the Wrightson 2003 annual report Freeth received remuneration of $477,820 - including all benefits.

Palmer was paid $80,000 for chairing the board.

Norgate has said RPI expects to control the Wrightson board now it holds a 50.01 per cent stake.

An announcement is expected next week.

Yesterday's appointment of BNZ agribusiness manager Ian Walsh to head Wrightson's financial services division was unrelated to the takeover, the company said.

Other issues relating to the takeover have yet to be resolved.

The most pressing is the future of a proposed amalgamation between Fonterra's RD1 and Wrightson's rural supplies business.

Fonterra has put it on hold until it finds out more about RPI's plans for Wrightson.

Norgate said there was no reason discussions could not continue.

Market watchers will now ask what is next for the normally stable rural services sector.

Aside from the RD1 issue there has been speculation about further consolidation among the big players.

But Williams & Kettle and Pyne Gould Guinness - the other big firms - have not been talking about mergers, according to the former's chief executive, Paul Macfie. "There has been nothing discussed at all."