Pacific Retail secures Bendon option

By Phil Boeyen, ShareChat Business News Editor

Thursday 17th January 2002

Retail company Pacific Retail Group (NZSE: PRG) has until the end of January to take its shareholding in Bendon Group (NZSE: BEN) to over 19% after securing an option for more shares.

PRG surprised the market on Wednesday with its announcement that it is interested in buying Bendon Group's operating company, Bendon Limited, and will submit a non-binding offer for the business.

An original management buyout offer from Bendon boss Hugo Venter and AMP Henderson was announced last November but the Bendon board revealed last week that it had another indicative non-binding on the table.

Now PRG has also joined the hunt, extolling the inherent value in the group and its stable of lingerie and other brands which are marketed in New Zealand, Australia and the UK.

PRG picked up a 15.5% Bendon stake yesterday from Tower Asset Management at $2.00 a share and says it now has an option on a further 3.55% from Axa at $1.90.

"Yesterday we paid a higher price for a larger and more important stake," says PRG director and Cullen Investments MD, Phil Newland.

"While today's parcel also commanded a premium, that is again justified through its strategic value. It brings us to a threshold we are comfortable with for the present."

When exercised and added to the 15.5% strategic stake acquired yesterday it would give PRG 19.05% of the Bendon shares on issue.

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