FAL Completes Acquisition Of Woolworths (NZ)
17 June 2002
FAL Completes Acquisition Of Woolworths (New Zealand)
Foodland Associated Limited (FAL) announced that its wholly owned subsidiary Progressive Enterprises Limited (Progressive) has today (Sunday) settled the acquisition of all of the issued capital of Denstree Corporation Limited (Denstree) which owns Woolworths New Zealand (WWNZ).
Settlement took place following further discussions with Dairy Farm International (DFI) and the lifting on Friday of the injunction obtained by Foodstuffs. The acquisition was financed from FAL’s internal working capital and by the vendor (DFI) on an interim basis pending the receipt of proceeds from an equity raising now underway.
FAL Group Managing Director Mr Trevor Coates stated that FAL had agreed to complete settlement given the continuing use by Foodstuffs of mischievous and ill-conceived tactics designed to unsettle some investors who had been approached to subscribe for equity in Foodland.
Mr Coates added, “our legal advice is that we will be able to successfully resist any further attempts to undo the transaction.”
We have asked our underwriters JB Were to continue their efforts on our behalf and thank potential investors for the patience they have shown while we concluded the transaction. We expect that institutional investors will be contacted on Monday to confirm their bids and that our shares will recommence trading on Tuesday.
Progressive Managing Director Mr Ted Van Arkel said “We welcome the staff of WWNZ, who due to Foodstuffs’ tactics have been through an unsettling period, to Progressive Enterprises Limited and we look forward to working with them to compete vigorously in the market.”