Richmond unimpressed by PPCS notice

Richmond chairman, Sam Robinson, says the latest notice by PPCS that it is eyeing 60% of the company raises questions of trust, openness, and integrity.

"Only a week ago PPCS chairman Jim Pringle and chief executive Stewart Barnett went to extraordinary lengths to describe their new investment (16.75%) in Richmond as 'friendly and constructive'.

"Mr Barnett was even reported as saying 'the company was not looking to increase its stake further'. Less than one week later Richmond receives what looks like a takeover notice from PPCS.

"There appears an abyss between what PPCS says and what it does, and this concerns me greatly."

Mr Robinson says Richmond is considering its response in terms of the company's obligations to its shareholders.

He also says the company remains open to proposals for mutual tangible benefits from PPCS.

"We have always accepted in principle there may be benefits in working more closely with PPCS, and we have been keen to explore and participate in any specific proposals they would wish to put to us.

"However, co-operation benefits are inherently based on trust and are not related to investment. The fact that PPCS feels the need to start with control rather than persuasion is more of an impediment to co-operation than a facilitator."

PPCS says it is considering taking its current 17% holding in Richmond to 60% at a price between $2.70 and $3.24 a share, although it has not confirmed plans to do so.

Last year PPCS had to sell a 35.8% stake in the then secondary-listed Richmond after an investigation found it had not complied with the Richmond constitution in the purchase. The shares were sold to Hawkes Bay Meat.

Toocooya Nominees sold its holding to PPCS last week, leaving farmer supplier interests Richhold and Waitotara Farmers as the other major shareholders.

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