By NZPA
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Thursday 16th January 2003 |
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And in another new move in the six-year long saga for control of Richmond -- the country's largest meat processor -- a small group of shareholders has said they will legally challenge PPCS's right to remain on the share register with a non-voting stake if its takeover bid fails.
The Bernard Matthews company, which owns a lamb-cutting plant in Waipukurau, notified the Stock Exchange this morning that its subsidiary, North Meats, had purchased nearly 1.5 million shares in Richmond.
It said it had purchased half the shareholding of Waitotara Farmers Holding, 95 percent owned by Richmond director Rod Pearce, for about $4.5 million.
Waitotara Farm Holdings held 2.97 million shares, nearly 8.6 percent of the voting rights.
The price per share was $3.02, three cents a share lower than PPCS' takeover offer.
The settlement date for the sale is the end of the month.
Richmond staff, individually and collectively, also control 6 percent of the voting rights in the company.
The Bernard Matthews shareholding, along with the Lowe Corporation's shareholding means PPCS will be unable to achieve 90 percent ownership of Richmond to succeed in its takeover and meet a requirement of a High Court decision.
The deal made Bernard Matthews the fifth-largest shareholder in Richmond behind Active Equities, PPCS and Lowe Corporation -- which last week snapped up 3.78 million shares, representing 9.96 percent of the voting capital when the 6.86 million shares the High Court ordered PPCS must forfeit were excluded.
Bernard Matthews, which holds about 4.3 percent of the voting rights, is seen as a friendly buyer by Richmond.
Eighteen months ago, through its subsidiary North Meats, it unsuccessfully bid against PPCS for ownership of Active Equities' 34 percent shareholding in Richmond.
PPCS's problems have been compounded by a small group of minority shareholders, headed by Napier solicitor Robin Bell, who will ask the Court of Appeal to rule on whether PPCS could remain on the Richmond share register with a non-voting stake if its takeover bid fails.
The Bell group, which initiated legal action last year over PPCS's share purchases in Richmond, said PPCS should be paying more now for full control of Richmond than it agreed to pay for a lesser shareholding 18 months ago.
Mr Bell said it was a paradox that PPCS was offering $3.05 a share for full control when it earlier agreed to pay $3.50 for a 34 percent shareholding.
It is due to settle a deal with Active Equities on February 1, at a cost of $51 million, based on an agreement reached in June 2001.
Richmond expects a merit report on PPCS's offer to be in the shareholders hands in about 10 days.
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