Gallagher Holdings - parent company of Hamilton-based electric fence exporters Gallagher Group - is seeking Commerce Commission clearance to buy rival agricultural manufacturer Tru-Test.
Gallagher Group deputy chief executive Steve Tucker said the move did not signal a takeover offer was imminent.
Gallagher Holdings was interested in increasing itsholding in Tru-Test if shares became available at the right price, Tucker said.
No decision had been made as to how far it would take its holding, he said.
The move to seek Commerce Commission clearance recognised that under the Takeovers Code the group had no option but to seek a 50.1 per cent controlling stake if it wanted to increase its holding above 20 per cent, he said.
"This is to ensure we can keep our future options open."
The potential acquisition of Tru-Test would enable Gallagher to be a more cost-effective supplier both to local and international markets, Tucker said.
Gallagher Holdings has already built up a 14.7 per cent stake in Tru-Test.
It is understood they paid an average of $1.20 a share. Tru-Test has about 32 million shares on issue.
Tru-Test's annual revenue to August 31, 2003, was $111 million.
