Allflex control

Press, 28 November 1987, Page 29

Allflex control

PA Wellington The acquisition of Allflex Holdings by Goodman Fielder Watties should boost Allflex group turnover about $l6 million a year, Allflex said in a statement yesterday. Allflex’s chief executive, Mr lan Wilson, said in a statement that Goodman Fielder had agreed to buy for 235 c a share the 51 per cent shareholding in the Palmerston North-based company held by Unigroup Pacific. The purchase would bring Goodman Fielder’s stake in Allflex to 64.7 per cent.

At the same, Allflex is issuing 6,333,333 shares to Goodman Fielder for Blen-heim-based Hammond, Irving and Brownlee (HIB) and its associated companies, Elastrator Company and Rover Products. HIB and its associated companies manufacture rubber castration and docking rings, shearing equipment and dog food. Allflex manufactures animal ear tags.

Allflex’s chairman, Mr Bill McPhail, said Goodman Fielder’s move gave Allflex the support of a principal corporate shareholder. Unigroup Pacific, formerly called Unity, started buying into Allflex in late 1985, but met strong opposition from the Allflex board.

While Unigroup achieved a 20 per cent interest in Allflex by early last year, Allflex directors refused to allow a Unigroup presentative on to the Allflex board. Meanwhile, in a move seen as a defensive measure by Allflex, the investment company, Leyland Capital (now Leyland Growth), bought about 20 per cent also and had a director appointed to the Allflex board.

However, Unigroup’s patience was rewarded late last year when the largest shareholder in Allflex, the Burford Family Trust, sold Unigroup which took management control, leaving Leyland Growth without a director.