Founder's son takes the money

By PAM GRAHAM

Doug Owens, the son of Owens Group's founder, Sir Bob Owens, is encouraging shareholders, staff and customers to accept Mainfreight's takeover of the company his father founded.

He said the family's decision to accept the hostile bid had been a difficult one, but "the most positive thing now, for everyone, is to sell to Mainfreight."

"I don't believe there is any way back and providing Mainfreight are prepared to grow the brand it will be positive for both companies and the industry."

The family lost 51 per cent control this year when some members sold to Mainfreight, leaving it with 36 per cent, and holders of that had now accepted Mainfreight's $1.10 a share offer.

That gave Mainfreight 66.56 per cent and 10.7 per cent shareholder AMP Henderson said yesterday that it would not stop Mainfreight from getting to its desired 90 per cent level if it was likely to achieve it.

AMP Henderson would wait until near the end of the bid period before finally deciding, said strategist Nat Vallabh. The bid closes on October 31.

Doug Owens said Owens Group was big in bulk freight and some customers did not want to deal with Mainfreight, whose specialty was consolidating and moving less-than-full container loads. Mainfreight is keeping the Owens brand.

"The trick will be how they commit to the brand and bulk freight to ensure that one and one equals two, not 1.5," said Doug Owens.

On behalf of the Owens family, Doug Owens has sent a letter to Owens Group staff, thanking them for 53 years of service.

"We urge you to embrace this change as a new beginning," the letter says.

Sir Bob Owens moved to Tauranga around 1951 after "telling the last gang to go" on Auckland's wharves as the waterfront strike ignited, his son said.

In Tauranga, he built a range of businesses, including Owens BOP, which provided stevedoring, log and materials handling to the developing Mt Maunganui port and later all ports.

Owens Group, the trucking and logistics company, started later in the 1960s, with the purchase of a six-truck fleet. "My father was first into integrated transport."

Doug Owens believes there will be more consolidation in road transport and that customers should not be threatened because it was better for everyone if trucks were full.

The main players would be Toll Holdings, Owens-Mainfreight and the Five Star group. "Something else is going to fall out of this," he said.

He said if Toll improved rail it would find friends. Its challenge was in the road transport business TranzLink, which he estimated had cost $80 million to build up and was only now just making a profit.

Owens Group had worked with Five Star and one of its members ran a truck in Owens' colours.

"The opportunities are still there to make sure that if a truck goes on the road it is full. I would encourage everyone to keep talking to get more consolidation."