HortNews
	Enza Changes Constitution To Make Shares Tradeable

WELLINGTON 13/2/2002 - The country's main pipfruit exporter, Enza, yesterday took the company to the logical conclusion of the producer board deregulation process by changing its constitution so that its shares are fully tradeable.

The change at yesterday's annual meeting in Nelson means shareholders will no longer have to own an orchard to retain their shares, and leaves the company positioned so that it can list on the Stock Exchange if necessary.

"The new constitution complies with New Zealand Stock Exchange listing rules and...for the first time, anyone can now buy and sell Enza shares," company chairman Bill Birnie said in a statement. Mr Birnie's merchant bank FR Partners and investment company Guinness Peat Group (GPG) each bought an orchard last year and bought up growers' shares until between them they controlled nearly 40 percent of the register and effectively took control of the company. The two corporates are now likely to be the biggest beneficiaries of any jump in share value.

"We have moved from the old cooperative days and operate in a fully-deregulated marketplace," Mr Birnie said.

"Having no restrictions on share ownership, means shares are more likely to trade at their full market value."

The change had significant value implications for shareholders and orchardists should seek independent advice before making any decisions on the future of their holdings, he warned. There were no immediate plans to list Enza, he said. "The new constitution will provide Enza with greater flexibility in capital raising if required in the future,".

Enza's board tried to introduce similar constitutional change last year, but withdrew them because of strong opposition from grower shareholders. But with the deregulation and removal of special export powers forced on the descendent of the old Apple and Pear Marketing Board has triggered increased interest in making Enza a listed company.

Enza directors have previously complained restrictions on trading its shares were keeping down their value down and limiting its ability to raise capital, but some orchardists have questioned why it would want to raise funds when its share of the national crop has been slashed by 30 percent.

Hawke's Bay pipfruit growers' chairman, Jonathan Wiltshire, said corporate directors had claimed there was likely to be an increase in value in the shares if it was to be listed, but there was no proof of that would happen.

And no valid reason had been put forward as to why the company might need any capital, with some growers claiming it was actually over-capitalised.

Enza made an operating profit of $12.15 million for the year to September 2001, but non-recurring costs turned it into a net loss of $20.7 million. Most of the loss came from $20.85 million worth of historical foreign exchange losses.