PDL share buyer's motive a mystery

By ELLEN READ markets writer

French-based Schneider Electric Industries is the mystery buyer seeking up to 15 per cent of Christchurch electronics manufacturer PDL Holdings.

Schneider, a multinational electrical equipment and electronics manufacturer, said it was not making a takeover bid for the company and had acquired a 13.5 per cent stake by the end of trade yesterday.

Jim McElwain, investment banking director at PricewaterhouseCoopers, which is advising Schneider, had no comment on the company's reasons for seeking out PDL.

Sharebroker Forsyth Barr said yesterday that it had been instructed by a client to acquire up to 15 per cent (2,038,722 ordinary shares) of PDL at $5.20 a share.

It said the stand in the market would remain open until completed or until Friday, February 23.

Forsyth Barr managing director Neil Paviour-Smith said there were no conditions attached to the offer, which was on a first-come, first-served basis.

In accordance with Stock Exchange rules, a minimum of 20 per cent of the shares sought would be acquired on-market, he said.

The $5.20 offer represents a $1.30 or 33 per cent premium to PDL's weighted average price over the past 90 days.

PDL chairman Warren Bell had earlier said that PDL chief executive Mark Stewart had confirmed the then-mystery buyer was not part of the Stewart family, who hold more than 50 per cent of the company.

PDL has been changing its focus from a manufacturing-dominated company to one that specialises in researching and developing world-class, leading-edge technologies.

The company reported a 5 per cent rise in after-tax profit to $3.2 million for the six months to September 30. Third-quarter sales to the end of December totalled $84.6 million, down from $88.5 million last year.