Mainfreight reaches 66 per cent

By PAM GRAHAM

Mainfreight has the Owens family on side for its takeover of Owens Group and is confident of signing up AMP Henderson.

Mainfreight's $1.10c a share offer for its rival closes on October 31. The Owens board recommended the offer but it is conditional on 90 per cent shareholder acceptance.

Mainfreight managing director Don Braid said the family of founder Sir Bob Owens had accepted, taking the total to 66.56 per cent.

"We are very conscious of how tough it has been for the family to make this decision and we understand that," Braid said.

AMP Henderson, the only large institutional shareholder, with 10.7 per cent, is expected to decide next week.

"AMP have to make up their own mind. They certainly have not come to us and said they are not going to accept," he said.

Braid said his company wanted total control.

"The way that we wish to manage the business requires us to have total control," he said. "It allows us to make the correct decisions that we need to make and it takes out an abnormal amount of associated costs if it remains listed."

A combined Mainfreight and Owens Group will have revenue of about $800 million a year and be in a stronger position to compete with Tranz Rail's new owner, Toll Holdings of Australia.

Mainfreight has a significant presence in the less-than-container-load (LCL) market and uses Tranz Rail to transport goods.

Braid said talks with Toll had been good but he was waiting to see how the future relationship would develop.

"I can understand Toll's frustration with not getting to 90 per cent and having to run it as a listed business. That is certainly going to add more cost and bring some difficulties to the operating structure.

"But I don't see there is a problem in instigating the changes they want to bring that will hopefully bring us a better transport network."