INDEPENDENT NEWS

Foodstuffs' stand for shares in The Warehouse

Published: Thu 8 Jun 2006 03:23 PM
Thursday 8 June 2006
Foodstuffs' stand for shares in The Warehouse closes at 5pm today Foodstuffs says it is very pleased with its acquisition of 4.5% (as at 2pm today) of The Warehouse Group Limited which makes it a significant shareholder in the retail organisation.
Foodstuffs New Zealand Managing Director Tony Carter says its stand in the market for shares in The Warehouse will close today.
"If investors want to take advantage of the $5.00 offer price and the escalator, they should accept our offer by 5pm this afternoon.
"We are very comfortable with the level of shareholding we have achieved. We have said from the outset that we were seeking up to 10% and our holding at this stage represents in excess of $70 million worth of shares at the $5.00 bid price. "
Tony Carter reiterated that Foodstuffs viewed the acquisition as a long-term investment and there is no intention to move to a full take-over offer. Nor would it be seeking representation on The Warehouse board.
"Some investors may have been buying shares over the last day or so in the expectation that we are about to launch a full take-over or will increase our bid price, and we have no intention of doing either. Investors need to remember that we are offering a 28% premium to Tuesday's closing price of $3.91 and a 31% premium over the three month volume weighted average price."
"We view The Warehouse as an iconic New Zealand brand with sound management in place. Foodstuffs is also a strong New Zealand company that has been looking after Kiwi shoppers for more than 80 years."
The grocery co-operative organisation consists of Foodstuffs (Auckland) Ltd, Foodstuffs (Wellington) Co-operative Society Ltd and Foodstuffs South Island Ltd. The national brands under the Foodstuffs umbrella are PAK'n SAVE, New World, Four Square and Write Price.
ENDS

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