PPCS bid goes all the way

By LIAM DANN primary industries editor

PPCS has succeeded in its takeover bid for meat exporter Richmond.

A notice to the stock exchange after 5pm yesterday confirmed that PPCS' stake had reached 97 per cent, well past the 90 per cent needed to compulsorily acquire the outstanding shares.

PPCS paid $39.3 million - $3.11 a share - for the 37 per cent stake it did not already own.

Shareholders were yesterday issued a 22c per share dividend which Richmond's board had offered on the condition that the takeover was completed.

PPCS held off declaring the bid unconditional last night, in order to allow the dividend to be paid.

The company also declined to comment on its success until it went unconditional.

The dividend was paid to recognise Richmond's abnormally good year, and enabled the company to use $5.3 million worth of imputation credits that would have been of little value to PPCS as 100 per cent owner.

It also had the effect of sweetening the PPCS offer.

The takeover will remove one of the country's largest agricultural exporters from the exchange.

A Richmond-PPCS conglomerate will have turnover of more than $2.2 billion - twice that of its nearest rival, Invercargill's Alliance - and will account for nearly 40 per cent of the nation's sheep and beef exports.