Reid Farmers appoints SEU boss to top job

By Phil Boeyen, ShareChat Business News Editor

Wednesday 5th September 2001

Former South Eastern Utilities boss George Gould is to head the newly merged rural services company, Pyne Gould Guinness Reid Farmers Limited (NZSE: REI).

Shareholders have today approved the merger between the two companies, which will see Christchurch-based Pyne Gould Corporation increase its shareholding in the combined business from 44% to 68%.

Chairman Bill Bayliss says one of Pyne Gould Corporation's conditions of the merger was that there be a new chief executive nominated by them.

"The change in senior management is a direct result of PGC proposing to have a greater involvement in the merged business than it had in the past with Reid Farmers.

"The independent directors, that is the Reid Farmers directors not being nominees of PGC, concluded that the merits of the merger were so compelling that it was in the best interests of the company and all shareholders that they should agree to PGC's proposition."

Mr Bayliss says the company is indebted to Reid Farmers chief, Brian Bilas, who has resigned.

"Brian has done an excellent job running this company. We are indebted to him for the quality of his leadership over the last four years and the significant role he has played in the development of Reid Farmers during that time.

Denis Hazlett, general manager of PGG for the last thirteen years, will retire at the end of this year while Mr Gould will be based in Dunedin, which will remain the merged company's head office.

Under the merger plans the company says it aims to keep the Pyne Gould Guinness and Reid Farmers businesses and brands intact and unchanged, but will look for synergy benefits between the two.

Following the merger the total number of shares on issue has increased from 56 million to 100 million.

Comments from our readers

No comments yet