NZ's Warehouse Group calls off PE takeover talks, shares plunge 9% (updated)

Warehouse

02/08/2024 05:24

(Updates with share moves, chair comments, and further
background)
       Aug 2 (Reuters) - New Zealand's Warehouse Group  WHS.NZ 
said on Friday that it has called off talks with private equity
firm Adamantem Capital for an up to NZ$587.1 million ($349.1
million) takeover after its key shareholder declined to back the
offer.
    This sent the shares of the merchandise retailer down 9.2%
to NZ$1.28, its lowest level since July 22 and significantly
below the lower end of the offer price range of NZ$1.50 and
NZ$1.70 apiece.
    The takeover bid, which valued Warehouse between NZ$518
million and NZ$587.1 million, was backed by its founder and top
investor Stephen Tindall.
    Under the proposal, Tindall, his foundation and certain
trusts, would have retained a 50% stake in the entity buying the
New Zealand-based retailer. 
        "A key shareholder has informed the board that they do
not support the current terms, and therefore the requirement for
75% approval from shareholders in each interest class is not
possible," Warehouse said.
  
    "The board has decided to defer further talks until such
time as the proposal receives wider shareholder support.", said
Warehouse Group Chair Joan Withers.
        Adamantem Capital did not immediately respond to
Reuters' request for comment. 
  
        Warehouse Group did not respond to a query on the key
shareholder.
  

($1 = 1.6818 New Zealand dollars)

 (Reporting by Sherin Sunny in Bengaluru; Editing by Sonia
Cheema)
 ((Sherin.Sunny@thomsonreuters.com;))