New bid for K.P. settlement may satisfy all parties

Press, 22 August 1978, Page 6

New bid for K.P. settlement may satisfy all parties

PA Wellington The battle for control of Kempthorne Prosser and Company is over, according to the finance editor of the “Dominion.” A compromise agreement was hammered out in Christchurch yesterday to turn the old Dunedm company’s fertiliser works throughout the South Island and in Wanganui into farmer-owned cooperatives. Details of the agreement will not be released until later this week. However, it is believed that the pact, which solves the 13-month-old running battle between Federated Farmers, the producer boards, the Ravensdown co operative group, Brierley’s and the two publicly listed fertiliser companies virtually gives everybody what they were seeking. Spokesmen for the negotiators declined to comment yesterday saying it would take time to prepare statements spelling out precisely what has happened. However it appt — the

agreement means that: — The Auckland-based New Zealand Fanners Fertiliser Company will be able to buy all the K.P. shares. This includes the present Ravensdown-held shares, Brierley’s holding of about 2.8 million shares and the remaining 10 per cent still in public hands. — K.P. can then become a wholly owned subsidiary of New Zealand Farmers’ Fertiliser. — At that stage N.Z.F.F. will be able to sell 60 per cent of the K.P. fertiliser interests to the Ravens - down •’o-operative group. This would be sufficient to gain the company lucrative tax advantages, and give it control of the fertiliser works. — As a consequence N.Z.F.F. will gain control of K.P.’s pharmaceutical interests as well as a 40 per cent stake in its fertiliser business. The agreement is good news for Brierley Investments, which made an early abortive attempt to take over K.P. Brierley’s will

now stand to make a sizeable profit — possibly as much as 1.25 M — from its involvement, which throughout this year has been aimed at helping the co-operative company. Ravensdown directors should be pleased too, because it frees the way for the Government to release producer-board funds to help pay for setting up the largely co-operative works throughout much of New Zealand. The Ravensdown people should also be happy at achieving their aim of control of all the former K.P. fertiliser works. The few remaining K.P. shareholders will be consoled by having their shares bought by N.Z.F.F., historically a strong company, at a reasonable price. Even Mr Muldoon should be happy. The agreement means the strong pressure from the farming lobbies to release funds for the exercise will be finished, well before the politically sensitive issue came before the electors.