Cash offer for Waitotara

By Libby Middlebrook

Waitotara Meats shareholders will receive more than $2 million in cash as part of a reformatted takeover deal from the country's largest meat processor, Richmond.

This week, the companies' directors agreed on a new deal that will give Waitotara's 100 shareholders about $2.3 million in cash instead of a stake in Richmond's 1998-99 end-of-year dividend.

Richmond chief executive John Loughlin said the company restyled the cash component of the deal because "Waitotara didn't have the number of imputation credits they thought they did."

The original offer gave Waitotara shareholders one share in Richmond for every 1.5 Waitotara shares, plus 20c a share, as part of Richmond's dividend for the 1998-99 year.

But Waitotara chairman Rob Pearce said the terms were withdrawn when the company found shareholders would be liable for double taxation on a dividend payout.

The new deal, which will cost Richmond the same amount of money ($11.75 million), gives Waitotara shareholders the same number of shares in Richmond (7.3 million) and a cash payout in November.

Richmond will keep 10 per cent of the payout because it already owns shares in Waitotara. This month, Richmond shareholders unanimously approved a takeover of the Wanganui meat processor.

Waitotara shareholders will vote on the takeover tonight.