KEY POINTS:
Entrepreneur Peter Maire has sold his stake in listed payment technology company Provenco to New Zealand's richest family, the Todds.
Todd Technologies now holds 19.43 per cent of Provenco, just below the 20 per cent that is often viewed by the market as a springboard for a takeover bid.
But market observers said yesterday a takeover looked unlikely.
A stock exchange notice yesterday showed Todd Technologies - a division of the family's investment company Todd Capital - bought more than five million shares from Tahia Investments, Maire's investment vehicle.
The NBR Rich List placed the Todd family in top spot last year with a $2.75 billion fortune.
Maire has estimated wealth of $65 million after selling his stake in technology company Navman in 2004.
Provenco issued five million shares to Maire at 85c each in June last year for a total of $4.25 million, with another 3.45 million options at $1.05.
Todd Technology bought 5.1 million shares - or 3.64 per cent of the company - from Maire for $5.1 million.
Macquarie Equities investment director Arthur Lim said Maire had been interested in merging Provenco with other companies, including Cadmus - of which he is a director and shareholder.
"With Todd now as the biggest shareholder in Provenco the likelihood of any kind of merger going ahead as was being promoted by Peter Maire is now very remote," Lim said.
To increase their stake beyond 20 per cent Todd would have to make a formal takeover bid or get permission from Provenco's shareholders for an issue of new shares or to buy existing stock.
"Not their style over the years," Lim said.
Robert Bryden, managing director of Todd Capital, has a seat on the Provenco board. "We always take an active interest in what the company's doing," Bryden said.
However, Todd Technologies did not intend mounting a takeover at this stage, he added.
ABN Amro Craigs analyst Brett Orsler agreed a full takeover offer from Todd would be a surprise.
"I'd suggest that they'd be happy to be a 19.5 per cent shareholder at this stage."
Maire was more of a short-term dynamic investor, compared with Todd Technologies, who probably had a longer-term outlook, Orsler said.
"Maybe he originally thought that a Cadmus-Provenco merger might be the way to go but with Provenco sort of luke warm at the best on that idea maybe he thinks there's other opportunities around."
Provenco's shares closed steady yesterday at $1.03 each.
