By Philippa Stevenson
agricultural editor
Collapsing export apple prices have clouded a bid by the management of rural services company Eastern Equities to take the company private.
Horticultural interests make up about 23 per cent of the Hawkes Bay company's approximately $80 million of assets and it exports around 750,000 cartons of apples
a year.
Yesterday, company founder and chairman Peter Roebuck said a drop of just a dollar a carton would cost the company $1.5 million and equate to an 8c fall in share value.
The gloomy market reports from exporter Enza were making the offer by a joint venture of himself, managing director Murray Boyte and AMP Asset Management look generous at 70c a share, he said.
Raised from 62c in late July, the price of 70c was now looking at the top of the valuation range.
"And if 55c is fair, then 70c is considerably generous. What it means is that if we go ahead we will be paying a hell of a lot for it at 70c."
On Monday, the bidders, who have sought 90 per cent of the company's shares, reported they had 67.9 per cent either already owned or on offer.
Mr Roebuck said more acceptances had come in this week but the closing time of the offer, set for 5 pm on Friday, would herald critical decision-making.
"At that point we've got to decide whether we accept and shut off and just take those we've got, insist on our condition of 90 per cent if that is not fulfilled, [decide] whether we completely abandon the bid, or whether we grant an extension to think a bit more.
"It will be one hell of a weekend trying to make up our minds what to do. It is nervous times."
