PPCS gets reprieve on Richmond voting rights

Meat processor PPCS will keep voting rights on a large part of its shareholding in Hastings-based Richmond, at least until the day after the closure of its disputed takeover offer.

The rights were to have been suspended tomorrow under a High Court order by Justice Young.

An application by Dunedin-based PPCS for an extension, on the basis that it was needed to allow it full rights under the Takeovers Code, was granted by Justice Hansen in the High Court in Christchurch last week.

It was opposed by Richmond and its Bell group of shareholders, who said PPCS had already had plenty of time to achieve the market solution to the ownership dispute as sought by Justice Young.

They said the offer had already been extended six times, and further extending the voting rights and offer itself would be very unlikely to produce enough acceptances from shareholders to give PPCS control.

Justice Hansen ruled that if the voting right suspension did not run in parallel with the offer's closing date, then PPCS' rights under the Takeovers Code would founder.

Although PPCS achieved its extension, it was criticised by the judge for the timing of the application, especially the change on Wednesday afternoon to seek a general stay until the outcome of Court of Appeal hearings in late July.

The "complex and bitterly fought litigation" had been presided over till now by Justice Young.

The closing date of the offer has yet to be resolved. PPCS says the last day can be 60 days from April 21, which would take it to late June.

Richmond and the Bell group believed the deadline was 60 days from when the offer went unconditional, meaning early June.

Mr Galbraith told Justice Hansen that the issue would go to the Takeovers Panel.

The PPCS offer was due to close on April 20, but a further extension is expected after Justice Hansen's ruling.

- NZPA