Bendon catches Pacific Retail's eye

By Phil Boeyen, ShareChat Business News Editor

Wednesday 16th January 2002

Appliance retailer Pacific Retail Group (NZSE: PRG) is interested in buying the lingerie business of Bendon Group (NZSE: BEN) and has bought a 15.5% interest in the listed company from Tower Asset Management.

Bendon Group's operating subsidiary, Bendon Limited, is on the market following a management buyout bid last November from the group's MD Hugo Venter with support from AMP Henderson.

Bendon announced this week that it had been approached by another party interested in buying the lingerie business and has invited further binding offers. PRG says it will take part in the offer process.

A parcel of 4.83 million Bendon shares representing 15.5% of the company was sold on the market mid-morning Wednesday at $2.00 a share - 18 cents above the Venter-AMP consortium proposal of around $1.82 per share.

PRG boss, Peter Halkett, says while the company's interest in Bendon represents a departure from its traditional business activities it is firmly in line with its expansion strategy and the aspirations of its major shareholder, Logan Corporation. Logan Corp owns 73% of PRG and is owned by Eric Watson's Cullen Investments.

"PRG recognises that Bendon has developed a considerable reputation and expertise in designing, marketing and distributing intimate apparel," Mr Halkett says.

The view is supported by Cullen MD and PRG director, Phil Newland.

"While the uncertainties of the macroeconomic environment have depressed markets in general and the difficulties Bendon has encountered building momentum in international markets have further affected its price, we recognise the inherent value in the group and its stable of brands."

Former PRG boss Stefan Preston, who is now Operations Director for Cullen, says Bendon offers an opportunity to add to PRG's stable other strong brands from a market leader and add value through operating expertise and synergies.

Pacific Retail Group trades through the Noel Leeming, Bond & Bond, Computer City, Living & Giving and Big Byte stores and also owns a number of finance brands through its Pacific Retail Finance business. It has annual sales of over $400 million.

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