Logan offer goes unconditional

By NZPA

Friday 12th July 2002

Logan Corporation, an arm of Eric Watson's Cullen Investments, has gone unconditional on its takeover offer for Pacific Retail Group.

Logan advised the market today that its $2.25 per share offer for PRG shares was now without a time limit. The offer period closed on July 28.

A spokesperson for Logan Corporation was unable to be contacted today but it is believed the company now has about 77 percent of PRG.

It is the second time Logan has attempted to take over PRG, the owner of Bendon Lingerie and several computer or appliance retail chains.

The first offer last year foundered on a price which most shareholders believed was too low. Logan originally offered $1.76 per share.

PRG's independent directors have recommended shareholders reject the current offer, pointing to an independent valuation by Grant Samuel which puts the company's share price at between $4.31 and $4.80.

Today Pacific Retail's chief executive Peter Halkett said Logan's second offer was more of a necessity in the light of the Takeover Code rules. When Logan bought a 3.77 percent stake in PRG from Advantage co-founder Nick Gordon, the offer had to be extended to all shareholders.

Mr Halkett said the strength of the current share price meant it was unlikely Logan's latest offer would succeed.

"With the share price being considerably higher than that, it just means life goes on."

For PRG, that meant the company would continue to keep an eye out for prospective acquisitions although there was nothing specific lined up, Mr Halkett said.

"There's lots of things on the whiteboard."

In May Pacific Retail Group reported a 68 percent leap in profit to $17.4 million in the year to March 31, and its total revenues increased 10.4 percent to $442.2 million.

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