Shuffling tipped at Richmond

By PHILIPPA STEVENSON agricultural editor

Musical chairs is the likely game at the Richmond board table today as southern meat company PPCS follows up its successful third overture into the Hawkes Bay.

Ignoring two earlier hostile receptions, the Dunedin-based cooperative took effective control of 52.5 per cent of Richmond this month. The company is now understood to want its taciturn chief executive, Stewart Barnett, on the board.

PPCS chairman Jim Pringle was the last to take a Richmond seat, but a year ago this week he was effectively given his marching orders when the company's February 1999-purchased shareholding was deemed to have been obtained in breach of Richmond's constitution.

PPCS sold its shares to Active Equities, the investment company of former Brierley executives Paul Collins, Bruce Hancox and Patsy Reddy.

It has now built a new, much larger, stake in Richmond, buying up the 10 per cent shareholding of investor-farmer Peter Spencer and 49 per cent of Active Meat, the Active Equities company that owns 35.8 per cent of Richmond. It has an option for the remaining 51 per cent of Active Meat that can be exercised in 2003.

Three years of Richmond share-shuffling has rung the changes on the board, including bringing the retirement and reinstatement of chairman Sam Robinson, who is vital to retaining the loyalty of Hawkes Bay farmer suppliers.

Richmond reportedly would like its own chief executive, John Loughlin, on the board to offset Mr Barnett - their contrasting styles are reflected in differing company philosophies.

Today's meeting could determine whether Mr Spencer, who has a major stake in rival Affco, remains on the board and whether all three Active Equities representatives stay. PPCS is believed to want Mr Spencer, represented by Malcolm Don, to keep his seat.

The company has just brought to the board former Air New Zealand managing director Jim McCrea, and retiring Dairy Board chief executive Warren Larsen.