Waitotara's owners hold firm over offer

By LIBBY MIDDLEBROOK

Hawkes Bay meat processor Richmond has avoided the clutches of PPCS after a substantial block of shareholders rejected the South Island meat company's takeover offer. For now that is.

Waitotara Holding Company shareholders on Monday turned down PPCS's offer to buy its 9.3 per cent Richmond holding, despite the South Island company boosting its offer from $1.65 to $1.80 a share.

The offer, which needed 75 per cent approval, gained about 73 support from Waitotara shareholders, who had previously received a recommendation from their directors to accept PPCS's bid.

A Waitotara spokesman was not available for comment.

PPCS chief executive Stewart Barnett would not comment on the company's next move, but PPCS is unlikely to go away.

For the past 10 months the company has been building its Richmond shareholding to gain more access to the lengthy North Island production season.

PPCS now holds more than 31 per cent of Richmond shares.

It is keen to increase its stake in the company to up to 51 per cent.

Many Richmond shareholders are against PPCS investing in the company, and a small group of farmer investors has set up holding company Richhold to block out PPCS.

Richhold is offering a one-for-one share swap and is understood to have collected about 9 per cent of shares so far. The offer closes on May 22.

The holding company has also sparked a board inquiry into the way PPCS bought its holding in Richmond early last year through the Maori investment company HKM Nominees.

Richhold says PPCS did not comply with Richmond's constitution because it failed to notify shareholders of its intention to buy into HKM.

The inquiry is expected to be completed by the end of the month.