PPCS sells venison venture to soothe critics

By PAULA OLIVER

After appearing to secure victory in the takeover battle for Richmond, South Island meat company PPCS yesterday moved to quash market dominance concerns by selling a venison business it bought little more than a month ago.

The Dunedin meat processor said it had sold Mair Venison's Rotorua plant to a consortium of investors. It would retain a 19.9 per cent stake.

The move has not stopped a Commerce Commission investigation into PPCS.

But a commission spokesman told the Business Herald that the divestment may affect the outcome of the investigation, as some of the complaints about PPCS buying Richmond centred on the North Island venison market.

Hawkes Bay's Federated Farmers yesterday said it still wanted the commission to look at PPCS' influence in sheep meat markets.

PPCS appeared to have finally found a place on Richmond's shareholder register on Tuesday when Active Equities said it would sell part of its 36 per cent stake to PPCS - despite having a higher cash offer available today from North Meats, a subsidiary of British private company Bernard Matthews Holdings.

PPCS and North Meats had been locked in a two week bidding war for Richmond.

But it is understood some of the Active Equities team and members of PPCS have associations going back up to 20 years - a hurdle North Meats found difficult to overcome.

Under the deal, PPCS will pay $3.65 a share to buy 49 per cent of Hawkes Bay Meat - the Active Equities company that holds 36 per cent of Richmond.

The Active Equities decision to sell to PPCS sent Richmond's share price plummeting 40 cents yesterday to a $2.65 close. It had peaked at $3.22 during the takeover battle.