Richmond chews over new PPCS holding

PPCS's larger stake in Richmond was outlined to the stock exchange Wednesday, and shows that the co-operative has acquired 49% of the voting rights in Active Meat Limited with the balance held by Active Holdings.

Active Meat holds 18 million shares in Hawkes Bay Meat, which in turns owns 14.66 million Richmond shares.

In the initial purchase PPCS gets the indirect 49% shareholding of the Richmond shares by paying $11.608 million to Active Holdings and subscribing for $12.5 million of preference shares in Active Meat.

The indirect holding is based on a share price of $3.65 and PPCS also gets an option to buy the rest of the shares in the future.

Richmond chairman, Sam Robinson, says he understands the rationale behind the Active Equities divestment in terms of loan repayment and to take some profits on the initial investment in Richmond.

"At this point of time nothing has changed for Richmond, and it would continue to operate as a separate independent company. Its vision and strategies for achieving them are unchanged.

"There has been sensitivity in the past among a good number of suppliers and shareholders to previous attempts by PPCS to control the company. If Richmond is to continue its strong performance, it is imperative the past be left in the past."

Mr Robinson says he shares the confidence expressed by Active Equities that Richmond has the resources and potential to be one of New Zealand's great agribusiness success stories.

Active Equities picked up its 36% stake in Richmond last year after PPCS was forced to sell because of a constitutional hitch.

Richmond appears in a much more conciliatory mood towards its now biggest shareholder than when PPCS first began making its majority aspirations clear a few weeks ago. At that stage Sam Robinson claimed the moves raised "questions of trust, openness, and integrity".

PPCS's latest move puts paid to plans by Southland-based North Meats to take a 60% shareholding in Richmond and saw the stock close down 40 cents on Wednesday at $2.65.

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