Richmond shareholders granted 20pc exemption

By LIAM DANN

The Takeovers Panel has granted an exemption to those Richmond shareholders who could breach the Takeovers Code if a High Court ruling comes into force next month.

The High Court ordered that majority shareholder PPCS forfeit some of its Richmond shares, and suspended voting rights on another block of shares. This means other Richmond shareholders who hold less than 20 per cent of the voting rights could become holders or controllers of more than 20 per cent when the court orders take effect, putting them in breach of the code.

PPCS, which holds 68 per cent of Richmond, could have its stake reduced to 34 per cent.

At present only North Meats, which owns a 10.4 per cent stake, is likely to be affected by the ruling.

The court order is due to come into effect after the resolution of an appeal by PPCS in July.

The panel considered submissions from the public before granting the exemption.