Change in Control

Manawatu Times, Volume 62, Issue 37, 13 February 1937, Page 12 (Supplement)

Change in Control

KIWI BACON COMPANY A CO-OPERATIVE CONCERN As tho result of recent negotiations, tho control of the Kiwi Bacon Company at Palmerston North, which has tho largest bacon output in Now Zealand, has passed to the New Zoaland Co-operative Pig Marketing Association. As a result of this important development, the Pig Marketing Association will now bo in a position to become a more thoroughly efficient producers' co-operative, as in tho future it can control produce from producer to consumer. In an interview with the "Times,'’ Mrs W. A. Phillips, Chairman of Directors of tho New Zealand Cooperative Pig Marketing Association, Limited, made tho following statement: — "Somo three and a half years ago, with tho friendly co-operation of the New Zealand Co-operative Dairy Company, Limited, knd the Amalgamated Dairies, Limited, our organisation acquired a quartor interest in tho Kiwi Bacon Company, thus securing tL permanent and reliable local market for its baconer supplies. Each of the abovenamed companies had an equal share in the paid-up capital of this company, the remaining interest being held by Messrs Picot Bros., whose managing director, until his recent Government appointment as Director of Local Marketing, was also managing director of the Kiwi Company. "Arising out of Mr Picot's appointment, which necessitated his retirement from all commercial activity, tho opportunity was offered to the other shareholders to acquire his interest. Resulting from this development it was agreed by all parties that tho opportunity thus afforded should be availed of by our association to further its original objective by securing the ownership of this successful manufacturing concern to provide for its shareholders a return for their pigs on a manufactured basis.

"For this and other important considerations, our board decided on this course, and the whole of tho Kiwi Company's shares havo sinco passed into tho control of our association. Owing to tho helpful attitudo of previous shareholders, their interests wero secured on terms most favourable to tho continued success of tho Kiwi Company, which from now on will be operated as a subsidiary of our own organisation. It will, therefore, bo appreciated that while it has been decided by our board to retain the present management of the Kiwi Company, and in all other respects that it should remain a separate entity, tho direction and control of its policy will become tho responsibility of our directors. "Resulting from these changes, it will*be understood that the Kiwi Company is now in its constitution absolutely co-operative, and. will, therefore, in future operate solely in the interests of sharehoders and suppliers to our association. These developments constitute the laßt link in our otherwise complete co-operative chain or Jo'cnl marketing and distribution from producer to consumer, and in this expansion, as in the past, our shareholders will be glad to loaru that wo havo been able to adhere to our policy of avoiding investment in fixed assets such as buildings und expensive plant, the Kiwi Company's assets being, as in the case of our own, in a liquid form."