Listed lingerie manufacturer Bendon is to become a private company after last night's announcement that managing director Hugo Venter will pay $38.5 million for the firm.
Bendon directors said the company's sole operating subsidiary, Bendon, would be sold to a consortium headed by Mr Venter by the endof this month.
Shareholders would receive the cash from the sale, boosted to $56 million by the sale of New Zealand China Clays.
An independent adviser will be appointed to report to shareholders on the proposed deal, and directors will call a special shareholders meeting in mid-February to approve the sale.
Mr Venter said his offer for the assets and operations of Bendon, excluding cash assets, would not result in redundancies.
"Having looked at the different options, I firmly believe the best way forward for Bendon is as a private company," he said.
Bendon yesterday reported a loss of $1.19 million for the six months to September, in line with expectations, largely because of the cost of expanding into Britain.
Total operating revenue was $36.2 million, compared with $40.8 million the year before.
Bendon's interim loss compared with an after-tax profit of $21.9 million for the same period last year.
The poor result stemmed from establishment costs of $1.2 million in Britain and lower-than-expected sales in New Zealand and Australia.
Bendon shares ended trade yesterday at $1.83.
This year, they have ranged between $1.51 and $2.11.
