Richmond rules out appeal

By LIAM DANN

Hawkes Bay meat processor Richmond will not appeal against a court decision giving control of the company to southern rivals PPCS.

Chairman Sam Robinson said yesterday that the committee of independent directors had decided not to go to the Privy Council so that the Richmond board and management could focus on the next financial year in what is expected to be a more competitive sheepmeat trading environment.

This month the Court of Appeal overturned a High Court ruling that PPCS should lose voting rights on a 35.78 per cent stake in Richmond for not properly disclosing its interests in takeover dealings done in 1999.

In court, PPCS said it would reopen its full takeover offer for Richmond, at $3.11 a share, if its voting rights were restored and no appeal was made to the Privy Council.

The Bell Group of Richmond shareholders, who have been running parallel proceedings against PPCS, is still considering whether to appeal to the Privy Council.

They have until October 21 to decide.

This week the Bell Group sent a letter to other minority shareholders seeking their views on an appeal.