No Increase, No Extension – Logan

No Increase, No Extension – Logan

First Test of New Code to Increase Shareholding

Auckland, 5 November 2001 – Logan Corporation has formally advised the independent Directors of Pacific Retail Group (NZSE: PRG) that it does not intend to extend or increase its formal offer of $1.76 for each share in PRG.

The offer is scheduled to expire on 10 November 2001. After considering Logan’s communication, the independent Directors of PRG have suggested that it may be appropriate that Logan relay that information directly to shareholders.

“We made it clear at the outset that we were not necessarily seeking 100 percent of PRG, although the provisions of the Takeovers Code required us to bid for 100 percent,” said Cullen Investments Group Managing Director, Phil Newland. “For that reason, our offer was not conditional upon any particular level of acceptances and, while we were prepared to purchase 100 percent of PRG, as required by the Takeovers Code, we will be comfortable closing out our offer with a substantially increased shareholding.”

In making their recommendation, which rejected Logan’s offer, the Independent Directors noted “the possibility of shares falling below the offer price of $1.76 if Logan does not achieve full ownership of PRG,” and concluded: “the Committee is also aware that there is limited liquidity for shares in PRG and that PRG presently is not paying dividends.”

Mr Newland said that this was a responsible approach by the independent Directors, who were cognisant that the pre-bid share price stood at around $1.40 and that shareholders faced the risk of limited future opportunities for exit.

Logan Corporation is a wholly owned subsidiary of Cullen Investments.

ENDS

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