Three-way race for Bendon confirmed

By Phil Boeyen, ShareChat Business News Editor

Tuesday 5th February 2002

A decision on Bendon's (NZSE: BEN) future remains up in the air with the company's board confirming that three parties are in the running for the business.

Bendon MD Hugo Venter was the first to throw his hat in the ring late last year and his consortium bid has been matched with interest from listed retailer Pacific Retail Group (NZSE: PRG). The third bid is believed to be tied up with Australian tycoon Solomon Lew.

Bendon's board announced Tuesday that an appraisal report by Grant Samuel has valued the company in the range of $1.94 to $2.19 per share. The valuation comprises $1.23 - $1.47 per share for the operating subsidiary Bendon Limited, $0.66 per share for BGL's net cash after remaining restructuring costs and seasonal replenishment of working capital, and $0.05 to $0.06 per share in surplus land and pre-paid tax assets.

"Two parties have expressed a continuing preference in acquiring only the operating business of Bendon Limited, although competing takeover offers from those parties still cannot be ruled out," the board says.

"In the circumstances, the board would prefer formal takeover offers for BGL as it would enable shareholders to more transparently evaluate competing bids."

PRG has already acquired a 19% interest in the company and its full offer, if it goes ahead, must be made in the next few days.

"Both of the other parties are currently giving further consideration to their offer price and acquisition mechanism and all parties wish to consider Grant Samuel and Associates' valuation advice.

"Although the board acknowledges that it cannot control the timing of any PRG takeover offer, it intends to continue discussions with all three parties with a view to having firm offers available for review and recommendation as soon as possible."

The board describes the current situation as "very complex and dynamic" but is assuring shareholders it is seeking an outcome that will maximise shareholder value.

"The board believes that shareholders should retain their shares pending release of the Target Company Statement, or release of a further statement on behalf of the Board should PRG's proposed offer not go ahead."

Although a timetable is still undecided it's estimated that if a binding offer for the business is received in the next few days, payment to shareholders could be made in April.

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