Storefund underwriter, ASB, to buy BBQ factory

Friday 2nd July 2004

The Storefund float has been pulled and ASB, the underwriter of the IPO, has announced it will be buying a majority interest in the BBQ Factory.

The BBQ Factory was planned as the first acquisition by StoreFund, which had proposed to raise equity and list on the New Zealand Exchange.

The BBQ Factory is being unbundled from StoreFund with ASB Bank taking a majority interest in the BBQ Factory only.

The directors of StoreFund, in conjunction with management company North Head have announced that the StoreFund listing will not proceed.

"Subscriptions were not at a level directors anticipated, and this was the most responsible course of action for the protection of members of the public who subscribed for shares," they say in an announcement.

Following negotiations with the parties involved, ASB Bank, the lead manager and underwriter of the StoreFund offer, made the decision to acquire the BBQ Factory through a private transaction.

"One of the key aspects of the StoreFund proposition was the strength of the BBQ Factory business. With the decision not to proceed with the IPO a private acquisition of the BBQ Factory by ASB Bank provided the most compelling solution," ASB Bank head of Institutional Banking Peter Hall says.

"ASB Bank fully supports the management of the BBQ Factory and their business plan. The BBQ Factory is a great New Zealand success story and an excellent business, and ASB Bank is very comfortable with its holding."

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