‘Friendly shareholder in S.F.M.’—P.P.C.S.

Press, 8 May 1980, Page 25

‘Friendly shareholder in S.F.M.’—P.P.C.S.

The directors of Southland i -rozen Meat and Produce i Export Company. Ltd, yesterday welcomed Primary Producers Co-operative SocJety. t Ltd, as a “friendly shareholder.” As announced yesterday,! P.P.C.S. has identified itself as the mysterv buver of S.F.M. shares, 'it was precisely this buying that has worried the S.F.M. directors for quite some time. P.P.C.S., in a statement, emphasised it is not considering a take-over of Southland Frozen Meat; its position could therefore be regarded as defensive. Although no indication of the level of the P.P.C.S. shareholding was given the statement indicates that the co-operative must have around 10 per cent of S.F.M. shares for its stake to be anything like a defensive move. It is now certainly the single biggest shareholding.

The statement said that the P.P.C.S. has “taken this strategic. shareholding in S.F.M. with a view to ensuring that S.F.M. maintains its position as a major independent New Zealand-owned

meat processor and ex-! porter.” The co-operative points out that it is a major farmers’ meat marketer with 10,000 supplier-shareholders covering the whole South Island [and with a substantial part ■of its business in Southland. [ The P.P.C.S. directors bejlieve that there is consider--[able mutuality of interest Iwith S.F.M., and are confident that the S.F.M. directors [will “welcome P.P.C.S. as a [friendly shareholder who .will ensure the long-term independence of S.F.M.” ! The P.P.C.S. is already a 'major supplier of stock to iS.F.M., and with more than !3600 shareholder-suppliers [in the Southland works [catchment area “are in a lunique position to forge an [even closer relationship with ! S.F.M.”

P.P.C.S., formed in 1547. expects lamb exports to be more than SI2OM this year. It trades in North and South America, Europe, Mediterranean, Middle East and Asia. It supplies the Jordanian armed forces under a SIOM contract and is a sub-

[stantial sub-contractor to [lran and Iraq. ■ In an effort to maximise iNew Zealand earnings most imeat is sold directly from [New Zealand into foreign markets. ' Growth of livestock handling by the society reached [39 per cent in 1979, and is ■ projected to be 30 per cent [this year. ■ S.F.M. recently announced a one-for-ten bonus share [issue, a one-for-four cash ! issue at a 60c premium, and [a proposed rebate scheme for farmer-supplier shareholders. That could have been seen [as part of a take-over defence as much as a mark for [the coming company centenlary.

The rebate scheme might also be described as a counter to moves for the competing Alliance Freezing ComIpany (Southland). Ltd. to be made a co-operative though ■in that case the farmer would not have a market on which to sell the shares when he ceased being a supplier: he would sell them back to [the company at company [price.

A 758 square metre back section at 868 Hackthorne Road. Cashmere, sold at mortgagee auction yesterday for $12,000. The 1975 Government Valuation is $15,500. The section slopes gently, faces north-west, and is within walking distance of schools, shops, and other services. About 20 people attended the auction, which was conducted by Mr W. W. Amderson of George Anderson, Smiths City. Market, Ltd. A three bedroom brick bungalow at 278 Greers Road, close to the Wairakei shopping centre, was passed in at $31,500 at an auction on the site on Monday. The 1979 Government valuation was $30,000. There were three bidders amongst the 200 or so people present for , the auction of furniture and effects, and the auctioneer was Mr P. J. Cook of W. E. Simes and Company. The house is on a 758 square metre section, and has a roomy lounge with an open fire, and a large kitchen with a chip heater. A solar water heating unit is also fitted. The lounge opens on to a patio and an adjoining sunroom.

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