Richmond looks into rights of share buy

By LIBBY MIDDLEBROOK

The country's largest meat processor, Richmond, has appointed a high-profile board committee to investigate the way PPCS bought its initial shareholdings in the Hawkes Bay company.

Richmond chairman Bob Croker and the company's deputy chairman, Michael Morris, will oversee an investigation into whether PPCS complied with the company's constitution when it bought shares in Richmond last year via Maori investment company HKM Nominees.

PPCS holds more than 30 per cent of Richmond at present.

The board investigation was prompted by holding company Richhold, which was set up by Richmond shareholders to block PPCS from gaining more than 50 per cent of the company. Last month, Richhold said PPCS had not complied with Richmond's constitution because it had failed to notify shareholders of its intention to buy into HKM in January last year.

Mr Croker said the matter had been referred to Richmond's lawyers and the company was considering seeking the opinion of a Queen's Counsel in relation to PPCS's share purchases.

He expected the matter to be resolved by the end of the month.

Meanwhile, the shareholders of Waitotara Holding Company will decide on Monday whether to accept PPCS's offer to buy its 9.3 per cent holding in Richmond.

PPCS has offered to pay Waitotara shareholders 165c a Richmond share.