Richmond seeks to resolve 'festering issues'

Hastings-based Richmond has announced it has applied to the High Court in Dunedin "seeking a declaration on matters pertaining to the sale by PPCS Limited of its shareholding in Richmond in July 2000 and PPCS' re-acquisition of that shareholding in June 2001."

"This action has been initiated by a committee of independent Richmond directors in order to resolve a longstanding dispute between Richmond shareholders," the company says

Richmond chairman, Sam Robinson, says he believes that the proceedings are in the best interests of Richmond, as they will resolve once and for all the festering issues between the company's shareholders.

"These matters are sufficiently important and fundamental for Richmond and all its shareholders to seek a definitive ruling. While they are being resolved, it is business as usual for the board and company."

PPCS was forced to sell a 35.8% stake in Richmond in 2000 after an investigation found it had not complied with the Richmond constitution in the purchase. At that time Richmond was a secondary listed company.

The shares in question were sold to Hawkes Bay Meat, which is a wholly owned subsidiary of Wellington-based Active Equities.

PPCS became a Richmond shareholder again in 2001 when it bought a 10% parcel held by Toocooya Nominees and further shares on market to take its current direct holding to 16.29% of the company.

However PPCS also purchased 49% of Hawkes Bay Meat, which in turn owns around 36% of Richmond. PPCS has an option to buy the remainder of Hawkes Bay Meat by September 2003 giving it a potential majority share of Richmond with 52% of voting rights.

In his speech to Richmond's annual meeting at the end of last year chairman Sam Robinson commented on the PPCS deal and urged "any shareholders who might still be upset about the transaction to put this matter behind them. The transaction is a reality, and not liking it will not change anything."

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