Richmond submissions sought

By LIAM DANN

The Takeovers Panel is seeking urgent submissions on a proposed class exemption for Richmond shareholders.

Because the High Court ordered that majority shareholder PPCS forfeit some of its Richmond shares, and suspended voting rights on another block of shares, 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 wants to exempt Richmond shareholders from rule 6 (1) of the code, so that any increases in their percentage control of voting rights in Richmond that result directly from the forfeiture or suspension of voting rights held by PPCS do not constitute a breach.

Submissions must be received by 9am, Monday, May 26. They can be forwarded to marion.hemphill@takeovers.govt.nz. For more information visit the Takeovers Panel website.