By Chris Hutching
Friday 28th April 2000
|Text too small?|
According to Tom Cross, a director of the Hawkes Bay farmer-owned company called Richold, the battle will determine who controls the schedules and dividends paid by Richmond.
Dunedin-based meat cooperative PPCS launched a bid for control of listed Richmond late last year and has reached nearly 30% via nominee HKM. With the support of the 10% stakeholder Toocooya Nominees, associated with Peter Spencer, PPCS chairman Jim Pringle was appointed to the board and they supported Bob Croker as chairman.
But Mr Cross said Richold was now becoming a force to be reckoned with. Its 15-20% target looked more realistic with Richold's 1:1 offer to Richmond farmer shareholders set to run until May 22, he said.
The farmer suppliers are also confident of the support of about 10% of votes controlled by Richmond staff.
"One of our first objectives would be to appoint a majority of directors on the board. There's a bit of play to run out yet before we sit down at the table and resolve this sniping. We need to be more cooperative," Mr Cross said.
Richold is also taking credit for increasing shareholder wealth with its market play. The Richmond share price has risen about 25c and has been trading between $1.45 and $1.55. Ironically this may have encouraged some hard-up farmers to sell shares.
PPCS chief executive Stuart Barnett said his board was seeking greater influence on the Richmond board. It was arguable what level of shareholding would achieve effective control but the PPCS board would like to get to 33%.
No comments yet
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes