Tindall abandons plan to privatise Warehouse

Stephen Tindall

The Warehouse founder Stephen Tindall has abandoned previously announced plans under which he would have privatised the company.

He is now considering what his next move will be.

Mr Tindall in a consortium with Pacific Equity Partners had been planning to offer shareholders $5.75 cash per share in a bid to take The Warehouse private.

But in a statement today, Mr Tindall said the consortium would not be proceeding with the foreshadowed offer.

He would not be submitting an offer for shares in The Warehouse on the terms announced on September 14, he said.

Circumstances had changed since he announced his intention to make an offer to the board of The Warehouse.

In particular there had been a significant change in shareholding in The Warehouse which had contributed to a markedly higher share price, Mr Tindall said.

He would assess future options in a considered manner and ensure that all stakeholder interests were contemplated.

Late last month a $200 million raid by Australian supermarket giant Woolworths gave it 10 per cent of The Warehouse, mostly at $6.50 a share.

A few months earlier the other member of the New Zealand supermarket duopoly, Foodstuffs, had also bought 10 per cent of The Warehouse at prices around $5 a share.

Both Woolworths and Foodstuffs were therefore in a position to block any formal takeover attempt for the discount retailer.

Mr Tindall's family interests and the Tindall Foundation hold around 51 per cent of The Warehouse shares.

Mr Tindall raised eyebrows when he left New Zealand for a prearranged holiday on September 29, just two days after Woolworths revealed it had bought its 10 per cent stake.

He has since returned.

Shares in The Warehouse closed at $6.52 on Friday.

- NZPA