PRG rejects Cullen allegations

By Phil Boeyen, ShareChat Business News Editor

Thursday 25th October 2001

The independent directors of retail company Pacific Retail Group (NZSE: PRG) have hit back at criticism by Cullen Investments over the appraisal report due to be mailed to shareholders today.

Early Thursday Cullen Investments, which is offering $1.76 per share for PRG through its Logan Corp subsidiary, claimed that the appraisal report bases its valuation on three year management projections which have not been presented to, considered or approved by the full PRG board.

But the committee of independent directors says it reviewed the assumptions upon which the financial projections were prepared by management and is satisfied that the projections are reasonably based.

"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," the committee says.

"In conclusion the committee confirms it is satisfied with the integrity of the information upon which the independent report prepared by is based."

In its appraisal the financial advisor, Arthur Andersen Corporate Finance, assessed PRG's value at between $2.13 and $2.95 - considerably higher than the Cullen offer.

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