PPCS set for final swoop

By LIAM DANN primary industries editor

PPCS looks almost certain to take full control of listed meat company Richmond when trading resumes on Monday.

The PPCS stake climbed to 89.06 per cent yesterday. If it reaches 90 per cent before 5pm on Tuesday it will be in a position to enforce a compulsory acquisition of all outstanding shares.

The successful takeover will remove one of the country's largest agricultural export companies from the stock exchange.

PPCS is a farmer owned co-operative.

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

PPCS chief operating officer Keith Cooper said it was not appropriate for him to comment until the outcome was formally decided.

The bid looked doomed when it was launched in June.

PPCS offered $3.11 per share for the 37 per cent of Richmond that it did not already own.

At that time, Richmond shares were trading at $3.20 and second largest shareholder North Meats had indicated that the offer price was not good enough.

An independent appraisal valued Richmond shares at up to $4.01 after news that it would double its profits this year.

PPCS made it clear it had no intention of increasing its offer.

However, when the Richmond board declared a 22c dividend, dependent on the success of the bid, North Meats sold its 12.6 per cent stake.

Tuesday will see the end one of New Zealand's longest-running takeover battles.

The Dunedin based co-operative's interest in Richmond dates back to 1996.

Richmond management fought it all the way to the High Court before PPCS gained majority control last October.

Along the way PPCS was found guilty by the High Court of "gross commercial misconduct" for using deceit to buy shares in Richmond.

It was forced to forfeit $20 million worth of shares as punishment.