Warehouse warns on below market price offer

Tuesday 26th April 2011

Retailer The Warehouse is warning its shareholders that an unsolicited offer being made for shares is considerably below the market price.

Some or all of the company's shareholders had received an unsolicited offer from Cargill Securities LP, an entity believed to be associated with Bernard Whimp, Warehouse chairman Keith Smith said today.

Cargill Securities was offering $2.34 per share, which was considerably below the current market price of The Warehouse shares. In early afternoon trade shares in the company were being bought at $3.55.

"The directors of The Warehouse are very concerned at the recent spate of unsolicited offers and urges shareholders to be very wary of such offers," Smith said.

Shareholders were advised to carefully consider the full details of the offer, including the price and terms, and consult their financial adviser before making any decisions.

The Securities Commission has warned shareholders to be cautious if they receive unsolicited offers for shares.

Last week it put out a statement following a below market value offer for SkyCity Entertainment Group shares from NZ Investment Securities LP, of which Whimp is the general partner.

The commission said it was taking legal proceedings against NZ Investment Securities and other limited partnerships associated with Whimp.

It was not illegal to make an unsolicited offer to buy investments or to offer to buy them at a price below their current market value, but it was against the law to mislead or deceive investors into accepting an offer, the regulator said.

NZPA

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