INDEPENDENT NEWS

Pacific Retail Takeover by Logan Corporation

Published: Thu 25 Oct 2001 02:39 PM
PRESS STATEMENT
AUCKLAND, 25TH OCTOBER 2001: Pacific Retail Group LIMITED (PRG) - Takeover by Logan Corporation
This statement is made in response to the press release made today by Logan Corporation's parent company, Cullen Investments. In that press release, Cullen Investments has criticised the independent report prepared by Arthur Andersen Corporate Finance on the basis that the financial projections referred to in the report have not been verified by the full board of Pacific Retail Group.
The Committee of Independent Directors notes that Cullen Investments has made this press release before it had an opportunity to read the independent report.
In response to Cullen Investments comments the Committee of Independent Directors responds as follows:
1. The Committee of Independent Directors was delegated authority by the board of Pacific Retail Group to deal with the takeover offer made by Logan Corporation for Pacific Retail Group - the reasons for this have previously been communicated to shareholders and optionholders. One of the Committee's obligations was to commission an independent adviser's report on the merits of the takeover offer. In turn, this necessitated detailed financial information about Pacific Retail Group being made available to the independent adviser, Arthur Andersen Corporate Finance.
2. As part of the process, the Committee reviewed the basis and underlying assumptions upon which these financial projections were prepared by management. It has subsequently done this also in consultation with its financial adviser, Northington Partners, and is satisfied that the projections are reasonably based.
3. Given the offer process had begun, the Committee did not believe it was appropriate for the full board of Pacific Retail Group, which includes board members with present or past relationships with Cullen Investments, to consider management's financial projections.
In conclusion the Committee confirms it is satisfied with the integrity of the information upon which the independent report prepared by Arthur Andersen Corporate Finance is based.
Richard Reilly
Chairman, Committee of Independent Directors
The End
For more information, please contact:
Scott W Forrest, Director -Client Services, Consultus New Zealand Limited on (09) 913 1823, or (021) 426 376, or at sforrest@consultus.co.nz

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