Directors can remain, says chairman

HASTINGS - PPCS chairman Jim Pringle will not automatically lose his seat on the board of Richmond as a result of the direction by Richmond's board that the southern meat giant sell its shareholding.

Last week, Richmond directors announced PPCS had breached its constitution when it bought a third share in its largest shareholder, HKM, in February 1999.

As a consequence, PPCS and HKM's combined 34 per cent shareholding has been declared "defaulter's securities" and they have been directed to sell their 13.8 million shares, worth about $22 million, within a month.

Richmond chairman Bob Croker said Mr Pringle and the HKM representative, Alan Haranga, could remain on the Richmond board.

While the two companies had been directed to sell their Richmond shares, it did not necessarily mean they would lose their directorships in the company, Mr Croker said.

Meanwhile, PPCS looks set to fight a decision forcing it to sell its Richmond shareholding.

PPCS chief executive Stewart Barnett said the ruling, by an independent committee of Richmond directors, was very technical and his company's Queen's Counsel disagreed with it.

The Dunedin company would review all options before making a decision on its next action.

Mr Barnett said: "Clearly our QC does not support the decision they came to. We will be looking at the reasons [for the decision] ... before we move in any direction. This is a very technical decision."

Mr Barnett said opposition to PPCS taking a stake in Richmond was only one side of the issue, with some North Island farmers supporting the move.

It is the second time that PPCS' moves to gain a shareholding in Richmond have been rebuffed.

Three years ago, Richmond took High Court action to block moves by PPCS to buy the Meat Board's 33 per cent shareholding in the company.

The shares were later sold to HKM, at the time said to be representing Maori interests. PPCS has since taken a controlling interest in Richmond.

- NZPA