A can of Speights shared around?

By Chris Hutching

Friday 30th July 2004

Dunedin-based PPCS chief executive operating officer Keith Cooper wasn't admitting to popping champagne corks when asked about delivering the final coup de grace this week after a six-year takeover battle for listed Hawke's Bay meat processor Richmond.

The key protagonist against the PPCS takeover was more forthright.

"I bet they bought a can of Speights and shared it around," lawyer Robin Bell said from his Hawke's Bay offices.

The main objective of his shareholding group had been to force PPCS off the share register but when that failed after an Appeal Court ruling last year the second object was to extract as much as possible for the minority shareholders and he was pleased it had succeeded.

PPCS sweetened its $3.11 a share offer with a special dividend.

Ironically, holding out initially against the $3.11 offer launched last month had prompted a brief spurt of speculative share trading (understood to include ACC) when the share price soared to $3.31, allowing smaller shareholders like Mr Bell to quit some of his stake at a healthy premium.

Meanwhile, Mr Cooper at PPCS was downplaying his company's victory, achieved after millions of dollars were spent by both companies taking various High and Appeal Court actions amid revelations of illegal and unethical antics by lawyers and executives on all sides of the drawn out saga.

PPCS this week swept aside Richmond directors Sam Robinson, Malcolm Don, Rod Pearce, Craig Boyce and Warren Larsen and replaced them with its own men, Ian Farrant (chairman), Stewart Barnett (PPCS chief executive), Rupert Curd, Bruce Hancox and Reese Hart.

They will meet by next month to agree on the strategy for integrating PPCS and Richmond.

PPCS has offered Richmond North Island farmers the opportunity to buy into the enlarged co-operative structure, ensuring they will be involved as suppliers while providing capital for the industry. The enlarged company will have 23 processing plants in centres from Gore to Dargaville earning revenue of about $2 billion with assets of $1 billion, accounting for 37% of sheepmeat exports, 35% of beef and more than half of venison exports.

PPCS received acceptances of its takeover offer that lifted its stake to 97% and will now compulsorily acquire the balance and de-list the company.

To ensure representation from Richmond suppliers, PPCS intends establishing a supplier council.

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