By PHILIPPA STEVENSON
Enza corporate investors yesterday made a tactical retreat from an expected showdown with shareholders at the company's annual meeting.
Heated exchanges and a flurry of lawyers' letters between the battling groups before yesterday's Wellington meeting had promised high drama.
It was delivered within minutes - before some of the apple
exporter's grower shareholders had even gained their town hall seats - but in a fashion that made something of an anti-climax of the rest of the meeting.
Enza chairman Tony Gibbs, of Guinness Peat Group, withdrew a controversial special resolution for the company to adopt a new constitution enabling it to list on the stock exchange.
A grower voting trust representing almost a 20 per cent shareholding intended to defeat the resolution, he said, so it was being withdrawn in the interest of industry unity.
"I don't think it is in the interests of the industry, growers or anybody to have that sort of shemozzle," Mr Gibbs said.
He said it was a sad day because the new constitution would have benefited all shareholders and better provided for small shareholders. Free trade of shares was likely to push the share price up, possibly providing a cash injection of around $20 million.
But he made it clear that supporters of listing, including GPG and fellow corporate FR Partners, intended to rapidly regroup.
He rejected appeals to withdraw a second listing-related resolution - requiring only 50 per cent voter support not the 75 per cent of the special motion - and proceeded with a vote enabling a share subdivision trebling shares to 60 million.
Mr Gibbs refused to explain the benefit of the share subdivision in the wake of the defeat on the new constitution, saying only: "It will make the shares more liquid [and] we will be back with the constitutional change."
The resolution was passed, as were four others, including the re-election of all sitting directors.
