PPCS takes board seat at Richmond

Friday 29th June 2001

By Chris Hutching

Dunedin-based PPCS chief executive Stuart Barnett put the final seal on a protracted takeover battle when he took a directorship on the board of listed Richmond Meats this week.

The move comes just before the new provisions of the Takeovers Code would have prevented PPCS from taking up the half share of Hawkes Bay Meat, which owns 49% of Richmond. PPCS has a 34% stake and options to go to 52% in 12 months.

With Invercargill-based Alliance and ailing Auckland company Affco, this leaves three big players in the meat business.

Mr Barnett said his first official meeting with other Richmond board members and his nemesis at Richmond, John Loughlin, went well and they discussed how to achieve new benefits relatively quickly.

The two executives plan to meet again soon to identify opportunities for synergies. Just what these new plans are remains a mystery for now and the companies have agreed to keep such commercial moves confidential. But in a joint statement they said any new changes would be for the benefit of both companies.

Mr Loughlin has been promised a seat on the board but not before one of the other directors resigns sometime later this year. The delay should also give PPCS a chance to see how things shape up before the appointment is made.

Among the nine directors on the board are Paul Collins and Bruce Hancox, who owned the shares sold to PPCS via their company. Peter Spencer, who sold PPCS 9.9% and who still holds 1%, is expected to remain on the board.

Other members include Dairy Board chief executive Warren Larsen, chairman and Hawke's Bay farmer Sam Robinson, accountant Michael Morris, Rod Pearce and Jim McCrea.

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