Last-ditch bid to block PPCS

By LIAM DANN, primary industries editor

A court showdown in the next two weeks is now the only chance the Bell Group has to stop southern meat company PPCS having its way with Richmond.

PPCS and Richmond yesterday agreed to the terms of their working relationship after PPCS won a Court of Appeal ruling granting it control of its Hawkes Bay rival.

The Bell Group of Richmond shareholders is challenging the ruling in the Privy Council.

But yesterday's agreement, which includes having more PPCS representatives on the Richmond board, enables Richmond to be "pro-actively managed" pending the appeal.

That means PPCS, which was awarded a controlling 63 per cent stake by the Court of Appeal last month, can exert its influence during the possible 18-month wait for a Privy Council hearing.

Because the structure of the company could be irreversibly altered in that time, the Bell Group is seeking a stay on the Appeal Court decision, freezing the judgment until the Privy Council rules.

Bell Group spokesman Robin Bell said it would be particularly concerned by any moves to merge any of the two companies' operational activities, which "could create the potential for the abuse of minorities' rights or make our right of appeal to the Privy Council of little value".

An Appeal Court hearing on the stay issue is expected in the next two weeks.

Under the new agreement, senior PPCS board member Reese Hart and South Island businessman Ian Farrant join PPCS chief executive Stuart Barnett on the Richmond board.

Craig Boyce also joins the board as a representative of second largest shareholder North Meats. Paul Collins and Jim McCrea will step down.

Richmond also announced yesterday that the company's Waitotara lamb-processing plant is being sold to Canterbury Meat Packers for $11.5 million.