PPCS scores a Richmond seat

By PHILIPPA STEVENSON

Persistent South Island meat co-operative PPCS has raised its stake in industry giant Richmond after years of the North Island company fending off advances.

Yesterday's move, in which PPCS took its interest in Richmond 25 per cent shareholder HKM Nominees to two-thirds, has put PPCS chairman Jim Pringle on the Richmond board.

In 1997, PPCS unsuccessfully sought the Meat Board's 33.4 per cent stake in Richmond. Last year, it bought a one-third stake in HKM, with an option to take another third.

Also yesterday, Richmond chairman Sam Robinson was replaced by a former senior partner and chairman of accountancy firm Ernst and Young, Bob Croker, but continues as a director.

Mr Croker, chairman of the National Maritime Museum and Northbridge Retirement Village, both in Auckland, has been described as a pragmatic and analytical man who is independent of past board factions.

Since August, he has been a Richmond deputy director, has chaired the board's finance committee and was alternate for New Zealand's largest single private farmer, Peter Spencer of Toocooya Nominees, who also is a major Affco shareholder.

Mr Croker became a full director after Arama Kukutai resigned.

PPCS, which now has about 16 per cent of Richmond, is seeking the benefits of the North Island's longer processing season.

Mr Pringle has taken the seat vacated by the executive deputy chairman of the Federation of Maori Authorities, Paul Morgan.

Yesterday, Mr Pringle said his company had always believed cooperation in the international marketplace would be advantageous to both companies.

Chief executive John Loughlin said a Richmond nervous of PPCS had wanted greater certainty about the southerner's intentions.

Richmond directors had wanted to see genuine cooperation before PPCS had direct board representation.

The past stakeholding in HKM had been somewhat ambiguous but was now more certain.

Mr Loughlin said relationships were developing between the companies. "It's pretty embryonic, but it is developing."

He said there were good financial signs for Richmond, including being ahead of budget for the first quarter of the 1999-00 year.