KEY POINTS:
Stephen Tindall has acknowledged that he may sell his controlling stake in The Warehouse Group, and says he will be considering his options over the next six months.
Meanwhile, the most touted potential buyer - Woolworths Australia - has confirmed its continued interest in the Red Sheds and
the New Zealand general goods market.
But it, too, says it does not expect further developments anytime soon.
Shares in The Warehouse closed down 10c at $6.80 yesterday.
The New Zealand grocery co-operative Foodstuffs has indicated it is an unlikely bidder, though some interests say the company cannot be ruled out of any takeovers.
Speaking after the company's annual meeting in Auckland yesterday, the Red Sheds founder acknowledged his emotional ties to the company, but said that would not cloud his financial decisions affecting the company's future.
Tindall - whose interests are said to control more than 51 per cent of the company and are valued at around $1.1 billion - acknowledged for the first time that the Red Sheds may go on without him.
Following what could be the last annual meeting of the Warehouse Group yesterday, Tindall told The Business Herald: "Clearly there is an emotional investment in The Warehouse, when you start it and when it has been there for 24 years.
"It may be the case like, if you've reared a child you want to make sure going forward that it is in the right hands, whether that includes you or not."
Asked if he had been in any discussions with other players, he said: "I told the meeting I am doing my best to make sure the right things are happening. That would tend to indicate that I am talking."
The acknowledgement that Tindall could be a seller rather than a buyer is significant because up until September 27 he sought to privatise the company with Pacific Equity Partners.
He was forced to withdraw after Woolworths' purchase of a 10 per cent stake pushed the share price to around $6.50 a share - well above the $5.75 a share Tindall planned to offer.
Woolworths Australia last year took over the supermarket chain Progressive Enterprises and yesterday reiterated that it has further ambitions in New Zealand.
The company held its own annual meeting in Sydney yesterday, where chairman James Strong said Woolworths "continues to evaluate strategic options in relation to the general merchandising sectors in New Zealand".
But if there is a takeover bid it appears to be on hold.
"We do not anticipate any immediate further steps under the current conditions and will retain our 10 per cent interest in the Warehouse," he said.
Around 29 per cent of shares are held independently from Woolworths, Foodtown and Tindall and his interests - including 31 per cent for Tindall and family interests, and 21.7 per cent for the quasi-independent Tindall Foundation.
Tindall said he did not have a timetable for his next move in the ownership issues facing the company.
In the meantime "anything can happen".
"I will consider it some time over the next six months. I don't want to rush it."
The Business Herald asked whether, with the share price at $6.80, he was tempted to sell.
"Some people make their decision purely on financial reasons. I am trying to balance that with doing the right thing by the people in the company and customers."
Meanwhile, The Warehouse Group chairman Keith Smith answered critics who questioned the performance of independent members of The Warehouse board not advising the market of early approaches to the board by Tindall.
"When Stephen approached with his thoughts, the board agreed to his conducting due diligence due to lack of competitive risk and the potential benefit to shareholders.
"Throughout the process the board believed there was no need to disclose matters whose terms were entirely speculative."
