Woolworths has taken a near $28.3 million haircut on its investment in Warehouse Group after James Pascoe, the retail group owned by David and Anne Norman, bought the Australian supermarket chain's stake in New Zealand's largest listed retailer.
James Pascoe paid $87.1 million to acquire Woolworths 30.55 million Warehouse shares at $2.85 a piece in an off-market sale, substantial shareholder notices lodged with NZX yesterday show.
That's some $96.4 million below the $183.4 million the Australian retailer paid for its stake in September 2006, via subsidiary Bancroft, which was amalgamated into General Distributors the following year.
That's been mitigated by the $68 million Woolworths pulled out in dividends since November 2006.
In a statement to the Australian stock exchange, Woolworths said its wholly-owned New Zealand subsidiary General Distributors, sold its 8.8 per cent stake in Warehouse after it "determined that the investment in Warehouse is no longer required as part of its New Zealand strategy".