PPCS bid for Richmond stalls at 68pc take-up

By LIAM DANN

With the PPCS takeover offer for rival meat company Richmond closing tomorrow, the Dunedin-based co-op's bid appears to have stalled at 68 per cent.

PPCS chief operating officer Keith Cooper said the company was still getting uptake on the $3.11 share offer. But he admitted it had added less than 1 per cent to its stake in the past month.

PPCS could extend the offer again - it has already done so seven times - but no decision had been made, Cooper said.

Under the Takeovers Code, the last possible date for the offer is June 19.

PPCS now looks a long way from the 90 per cent stake it originally wanted. That would have allowed it to take total control of its Hawkes Bay-based rival.

If the offer does close tomorrow, PPCS will have to rely on the High Court to allow it a controlling stake. The court has already ruled that PPCS should forfeit 6.7 million shares and lose voting rights on another larger package.

PPCS is appealing that judgment. If it is unsuccessful it will be left with just a 34 per cent voting block. PPCS would then have to work with those Richmond shareholders that had worked to stymie its takeover.

These include North Meats - owned by UK giant Bernard Matthews - which has bought 10 per cent of Richmond since PPCS launched its bid.

Cooper said he remained optimistic that the court would reverse its decision but that PPCS was prepared for the "worst-case scenario".

The parties would all have a shared interest in increasing economic returns and he was confident they would put their differences behind them.

Richmond reports its half year result today.