PPCS checking sale prospects

By PHILIPPA STEVENSON agricultural editor

Southern meat co-operative PPCS is testing the market for the 35 per cent share of North Island processor Richmond it was ordered to quit after an alleged constitutional breach.

Richmond advised the Stock Exchange yesterday that PPCS and its associate, HKM Nominees, were seeking expressions of interest in their 14 million shares, worth about $22 million, until 5pm today.

PPCS was expecting offers to exceed $1.90 a share, Richmond said.

Last week the cooperative, which had sought 51 per cent of Richmond, was told to sell its shares within a month after Richmond chairman Bob Croker and his deputy, Michael Morris, found it had failed to meet the notification requirements of shares bought in February 1999.

The finding followed a fightback by small farmer shareholders in the Hawkes Bay who placed their shares in a holding company, Richhold, to repel PPCS.

PPCS chief executive Stewart Barnett said nothing should be read into the move.

"We still don't accept that we have transgressed their constitution but it is prudent to canvass who has an interest in purchasing in the advent we have to sell."

PPCS had privately approached potential buyers and was surprised that Richmond had made public statements about the matter.

Richmond chief executive John Loughlin said Richmond felt it had a duty to inform the Stock Exchange of the PPCS move because of its listed bonds.

The public notification also ensured people were trading in an informed market, he said.

Mr Loughlin said there was plenty of interest in the shares from a variety of people who could collectively take them up, including farmer suppliers and customers.

Mr Croker said Richmond would do all it could to assist PPCS to divest its shares at fair value.

In the past year, Richmond shares have traded from 120c to 165c a share.