Richmond ownership on the block

By LIBBY MIDDLEBROOK

Hawkes Bay meat processor Richmond could have a new dominant shareholder by June if Richhold, a new holding company promoted by dissident shareholders, succeeds in a share-for-share swap deal which it began offering to the public last week.

Richhold, which was set up to win control of Hastings-based Richmond for farmer shareholders, is offering one share in the holding company for every share held in Richmond, one of the country's largest meat processors.

James Aitken, a former Richmond director and currently chairman of Richhold, said the holding company hoped to gain about 60 per cent of Richmond through the share-for-share swap deal.

Richhold was set up by farmers Tom Crosse and John Cullwick, along with Mr Aitken. It served the Richmond board with a notice of a "friendly" takeover early this month but had to wait 15 days before it could stand in the market for Richmond shares.

"It's basically nothing more than a device for shareholders to aggregate their interests. We want to send a very strong message to the board that we want performance from the company," Mr Aitken said.

Since last August, Richmond has been the takeover target of South Island meat processor PPCS, which is keen to gain access to the North Island's long production season and is offering up to $2 a share for up to 51 per cent of Richmond.

PPCS indirectly holds about 20 per cent of Richmond through HKM Nominees, a Maori investment company that owns 25.5 per cent of Richmond.

Richmond's largest shareholders also include Richmond employees, who own about 10 per cent, and the Waitotara Farmers' Holding Company, which holds a 9.3 per cent stake. The remaining shares in Richmond are mostly held by farmers.

The deal, which is being offered to more than 2000 Richmond shareholders, closes on May 22.