Cullen reduces ADV Position, Increases PRG Stake
Cullen reduces ADV Position, Increases Stake in PRG
Cullen Investments today announced that its associated company, Calibre Investments Limited, had sold 11,535,714 shares in Advantage Group (NZSE: ADV) to Nick Gordon for approximately $0.37 cents per share. Advantage shares closed at 36 cents yesterday. Calibre will retain a small residual holding in ADV.
Cullen’s wholly owned subsidiary, Logan Corporation, has also entered into an agreement to purchase, from Mr Gordon and his family, 1,905,215 shares in Pacific Retail Group (NZSE: PRG), representing 3.77 percent of the ordinary shares in the Company, at $2.25 per share. PRG shares closed at $2.26 yesterday.
Under the provisions of the Takeovers Code Logan, which currently holds 73.17 percent of the ordinary shares in PRG, is required to make an offer to all shareholders within 220 days of effecting this transaction.
“We are comfortable with our current position, but are required by the Code to acquire Mr Gordon’s shares through a Code offer, thereby creating a consequential opportunity for other PRG shareholders to participate,” said Cullen Group Managing Director, Phil Newland. “What is important is that minorities have a choice – that is precisely the purpose of the Code. However, given the signalled change in direction of PRG into an investment vehicle, as evidenced by its recent successful takeover bid for Bendon Group Limited, any shareholders who may wish to sell are likely to see the offer as a convenient opportunity to do so.”