PPCS declares Richmond offer unconditional stake now 57 percent

Mr Lowe, a Hawke's Bay businessman, looks set to become a director of Richmond once PPCS reviews the board.

Also today, Dunedin-based meat processor PPCS increased its offer for Richmond shares to $3.11 from $3.05 and waived the 90 percent acceptance and other conditions in the takeover offer.

All shareholders receive the increased price, including those that have already accepted PPCS' offer.

PPCS chief operating officer Keith Cooper said the company was very pleased to receive Mr Lowe's acceptance, and was still aiming for 100 percent of Richmond.

PPCS' offer closes on March 28, and Mr Lowe's stake increases its holding to 57 percent.

Mr Lowe, whose stake was strategic to the bid by some Richmond shareholders to exclude PPCS, said he hoped PPCS would be successful in its takeover bid.

Owner of the country's largest leather processor, Mr Lowe became Richmond's fourth-largest shareholder in January after increasing his stake to 8 percent to ensure that supply contracts with Richmond would be honoured by any new owner.

He is part-way through a 12-year agreement giving him access to Richmond's by-products.

Today, Mr Lowe said PPCS had given assurances to the Richmond board and shareholders that if and when it gained control of Richmond, all existing contracts would be honoured.

"Having obtained these assurances, I have sold my Richmond shares to PPCS. I hope this will enable PPCS to success with its takeover and help resolve the continuing uncertainty about the ownership of the company."

PPCS chairman Jim Pringle said PPCS would review the makeup of Richmond's board "in due course" to ensure it had appropriate representation from the farming, commercial and meat industry sectors.

"Given his industry experience, Graeme would make an obvious choice should he be prepared to make himself available," Mr Pringle said.

PPCS will use the Hawke's Bay as a base for both PPCS and Richmond, and has confirmed its support for the retention by Richmond of the Richmond and Lowe Walker brands.

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