Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Foodstuffs seeks 10% stake in The Warehouse

7 June 2006

Foodstuffs seeks to acquire 10% stake in The Warehouse

New Zealand's three Foodstuffs companies today announced their intention to purchase up to 10% of shares in The Warehouse Group Ltd (TWL).

The Kiwi co-operative organisation consists of Foodstuffs (Auckland) Ltd, Foodstuffs (Wellington) Co-operative Society and Foodstuffs (South Island) Ltd. The national brands under the Foodstuffs umbrella are PAK'n SAVE, New World, Four Square and Write Price.

The three companies are offering $5 per share which represents a premium of 28% over yesterday's closing price and a 31% premium over the three-month volume weighted average price (VWAP).

Foodstuffs (New Zealand) Ltd Managing Director Tony Carter says the stake is a strategic long-term investment for Foodstuffs and there is no intention to move to a full take-over offer.

"We see The Warehouse as an attractive investment opportunity. It is a well-run business in the retail sector which we know and understand, and being New Zealand-owned and controlled its culture is similar to ours."

Foodstuffs will not be seeking representation on The Warehouse's board.

Mr Carter says the purchase will be funded out of normal working capital facilities and there will be no impact on Foodstuffs' ongoing development programme.

"This level of investment is one which our respective boards are comfortable with," says Mr Carter.

The shares will be purchased on and off-market by subsidiary companies associated with each Foodstuffs company.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>