Independent directors at New Zealand meat processor Richmond have said they will support “in principle” a takeover bid by former rival PPCS.

PPCS, which already owns 62.9% of Richmond, has offered NZ$3.11 (US$2.02) per share for the remaining stock, but its offer is conditional on it getting enough acceptances to lift its stake to 90%, at which point a compulsory acquisition of the remaining shares would be triggered.

Richmond’s independent directors said there is “no perceived likelihood” of another offer and they are therefore supporting the PPCS offer in principle, even though it is lower than the $3.48 to $4.01 per share valuation of Richmond made by an independent adviser, reported Dow Jones News.