NRM defends purchase of Fiji shares *

Press, 24 September 1983, Page 24

NRM defends purchase of Fiji shares *

A New Zealand company negotiating to buy shares in Flour Mills of Fiji says it has no interest in controlling or dominating any Fiji firm.

Northern Roller Milling Company, Ltd, a subsidiary of Wattie Industries, said in a statement yesterday that it had an understanding with the Fiji Government to become a minority shareholder, if the deal goes through, by selling its surplus interest in the Fijian company to Fijian shareholders.

Northern Roller Milling Company (NRM) is negotiating to take over the controlling interest held by a local firm, Punja and Sons, in Flour Mills.

The move has sparked a sharp reaction from Flour Mills employees who petitioned their union, the National Union of Factory and Commercial Workers (NUFCW), to intervene. The workers said they wanted their union and the Government to help them buy out the shares and claimed NRM was trying to get control offia local monopoly enterprise. An NRM spokesman, Mr N. F. Robertson, denied that in the statement. He said that NRM had no wish to control or dominate the flour and feed industry in Fiji. After learning that Punja wanted to sell its majority shareholding in Flour Mills, NRM told the Government that it would reduce its holding to minority status, if it acquired the Punja shares, by selling part of its holdings to Fijian shareholders nominated by the Government. If the Government did not nominate anyone, the company would sell the shares to any other willing buyer at the original purchase price. Mr Robertson said that

NRM had promised to bring in expertise to the flour milling operation and had outlined broad proposals to increase the range of its products. It would emphasise exports and give shareholders and employees a good deal of confidence in the company’s future. Mr Robertson said NRM wanted to work with local partners in Fiji and would welcome staff members as shareholders/ He added that he will visit Fiji soon for talks with interested parties including staff and union. “But it must be pointed out that no agreement currently exists for us to purchase a shareholding, and should we wish to proceed, a number of approvals would be required both in New Zealand and Fiji before any changes could occur.

“It is important that NRM’s participation in feed milling be placed in correct perspective. NRM owns 34 per cent of Crest Mills (Fiji), Ltd, and Crest Chicken, Ltd, and has one director on a board of four. Local shareholding is currently 15 per cent. “However, the Fiji Government is aware of our desire to have Fijian participation to a level of 50 per cent jin these companies, and this is likely to be achieved within a year.”

Mr Robertson added that the majority of Crest chicken production comes from contract growers and Crest had no intention of changing this. “Indeed an increased payout price to growers has been jmade recently as an interim gesture while Fiji’s Ministry of Agriculture completes a survey of grower production costs. “Proposed legislation will control all sectors of the industry in the near future, we understand.”