Fletcher indeed the mystery bidder

Press, 13 May 1981, Page 22

Fletcher indeed the mystery bidder

Fletcher Challenge, Ltd, disclosed yesterday that it is the “mystery” buyer of Canterbury Frozen Meat shares.

Fletcher Challenge’s chairman (Mr R. R. Trotter) said in a statement that his firm has bought 10 per cent of the C.F.M. share capital. Mr Trotter said that an interest in C.F.M., Ltd, had been taken as an initial investment to protect the interests of Wrightson, NMA, a Fletcher Challenge subsidiary, and its farmer clients. He added that for some time Fletcher Challenge had been growing concerned about possible changes occurring in the meat industry. “One of its major subsidiaries, Wrightson N.M.A. and its farmer clients, could be vitally affected by any limitations to existing drafting and marketing arrangements for fat stock.”

Mr Trotter said that last year Wrightson N.M.A. drafted some 23 per cent of

lambs killed and exported through all meat processing and marketing companies in the South Island. “Accordingly, an interest

in C.F.M. has been taken as an initial investment to protect the interests of the company and its farmer clients who prefer competition and a choice in the marketing of their fat stock.” The share price of Christchurch-based C.F.M. rose sharply last week when the unlisted Primary Producers Co-Operative, Ltd, of Dunedin, entered the market to increase its stake in C.F.M. from 24.6 per cent to 38 per cent. A mystery buyer, identified now as Fletcher Challenge, also entered the market at prices slightly higher than those offered by the P.P.C.S. Both buying orders were quickly filled. P.P.C.S. paid out more

than 54 million last week to increase its stake to 38 per cent. _____