Panel Considers Richmond May Have Breached Code

NEWS RELEASE

19 July 2004

Takeovers Panel Considers Richmond May Have Breached Code

The Takeovers Panel has decided to convene a meeting under section 32 of the Takeovers Act to determine whether Richmond Limited has contravened the Takeovers Code by issuing its recent target company statement without it being properly certified by the Chief Financial Officer of the company.

Richmond is currently the subject of a takeover offer which was made by PPCS Limited on 28 June 2004. In response to that offer Richmond issued a target company statement dated 6 July 2004. The offer is due to close on 27 July 2004.

The target company statement did not appear to comply with the Code in a number of respects. The Panel has been in discussion with Richmond about these matters. As a result Richmond is to release a supplementary correcting statement to shareholders shortly. However an outstanding issue remains concerning the non-signing of the certificate in the target company statement by the Chief Financial Officer of Richmond at the time the statement was issued.

The Panel met on Friday 16 July 2004. It considers that Richmond may not have acted in compliance with the Code by issuing its target company statement without a certificate signed by the chief financial officer of the company as required by clause 26 of Schedule 2 of the Code.

The Panel has convened a meeting in Wellington on Thursday 22 July 2004 to determine whether it should exercise its powers under section 32 of the Takeovers Act 1993. The meeting will be a private meeting.

The notice of meeting is published on the Panel’s website at www.takeovers.govt.nz

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ENDS

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