By PHILIPPA STEVENSON
Applegrowers have all but sold out of major apple exporter Enza.
Corporate investor Guinness Peat Group had gained 86.64 per cent of the former producer board yesterday as most of the 1065 orchardists cashed in their shares.
GPG has extended the month-old $57 million or $1.20-a-share offer, due to
close on Monday, until May 24.
The move is likely to have been made to give the company, which began with 20 per cent, a chance to get 90 per cent ownership and the right to compulsorily acquire all remaining shares.
GPG director Tony Gibbs was overseas and unable to be contacted yesterday but after gaining the 20 per cent holding of fellow corporate investor FR Partners in March said he had bid for all shares "in fairness to everybody".
In a letter to shareholders yesterday, Gibbs said he appreciated it had been difficult for some growers to consider GPG's offer because it had been made during the busy picking season. "Extending the offer period will give those growers who have not accepted, and other shareholders, the opportunity to now do so should they wish."
GPG had a long-term strategic vision for Enza which included better returns for growers through business efficiencies, he said.
If the remaining shareholders sell out of Enza they will render the former Apple and Pear Marketing Board the first major producer board to entirely go from grower control.
While the other former major boards covering dairy, meat, wool, and kiwifruit have changed almost beyond recognition from the heights of their powers, their replacements still have strong, if not exclusive, producer control.
John Isles, the former chairman of the watchdog Apple and Pear Board, whose role disappeared with last year's deregulation of the pipfruit industry, said a GPG-dominated Enza would be good for growers, who would benefit from a de-politicised Enza.
"GPG and Tony Gibbs are very, very good operators, extremely good. It will provide a strong competitive and internationally substantial apple trader."
Growers now had a choice of exporter and it was not clear whether Enza would lose supply because non-shareholding orchardists felt less loyalty to the company.
Isles said growers could have tangibly expressed loyalty by retaining or increasing their shares but had chosen not to.
