Venter raises Bendon bid

By Phil Boeyen, ShareChat Business News Editor

Wednesday 20th February 2002

The Venter/AMP consortium bidding for the lingerie business of Bendon Group (NZSE: BEN) has raised its offer for the business above that of rival Pacific Retail Group's (NZSE: PRG) takeover price.

The increased offer of between $1.96 and $1.99 for Bendon Limited brings the bid just above the minimum of Grant Samuel's valuation range for the company of between $1.94 to $2.19.

It also compares to the current Pacific Retail Group takeover offer of $1.90 per share for up to 100% of the company, conditional upon PRG increasing their shareholding from the present 19.05% to over 50%.

Unlike PRG, which is making an offer for the whole company, the Venter/AMP group is only bidding for the operating subsidiary, Bendon Limited.

Bendon boss, Hugo Venter, says the increased offer consists of $1.36 for the subsidiary, 57 cents for the cash in the Bendon Group, and the final trading results for the fourth quarter, estimated at 6 cents.

"This offer provides shareholders with up to nine cents more than the other offer. We would suggest that shareholders think carefully and take advice before making any decisions.

"Almost four weeks of due diligence has strengthened our original belief that this company, like most great fashion houses, would function best as a 100% privately owned company where it can operate more flexibly and with reduced overheads. This is why we are interested in bidding for the subsidiary business and not the listed entity."

Bendon's directors say the sale of Bendon Limited would require approval at a shareholders meeting.

"Over the past month, the board has urged all interested parties to make a takeover offer for BGL, as the board's preferred approach. This approach would provide BGL shareholders with a clear comparison of the competing offers.

"The AMP/Venter consortium have consistently advised that they are only interested in purchasing the shares in the operating subsidiary Bendon Limited."

The board says that for the AMP/Venter Consortium to succeed it would need to obtain the support of at least 75% of shareholders and PRG has advised they will vote against AMP/Venter proposal.

"The board recognises that this would make it very difficult to have the sale to AMP/Venter consortium approved by shareholders. The board continues to work with the AMP/Venter consortium, and a decision will be made later this week on their offer."

Shareholders are being advised to wait until they receive Bendon's target company statement in response to the PRG takeover offer before taking any action.

The statement is due to be mailed by early next week and will contain the board's recommendation on the offer.

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