PRG wades in with full bid for Bendon

By ELLEN READ

The battle for lingerie maker Bendon intensified yesterday when Pacific Retail Group (PRG) unveiled a $1.90-a-share takeover bid for 100 per cent of the company.

Bendon directors - including managing director Hugo Venter, who has made his own bid for the business - are expected to respond to the offer on Monday.

PRG's bid, made through its wholly owned subsidiary Pacific Retail Apparel, was launched from a substantial platform. PRG already holds 15.5 per cent of Bendon Group and an option to acquire another 3.55 per cent.

When exercised, this would give PRG control over 19.05 per cent of the 30.88 million shares on issue.

Already on the table is a $38.5 million management buyout offer from Mr Venter, in association with AMP Global Investors, for Bendon Group's operating subsidiary.

Another bidder, as yet unnamed, has also offered to buy that business for about the same amount as Mr Venter.

Bendon Group itself also has an estimated $17.5 million remaining from last year's sale of another subsidiary, NZ China Clays. One analyst put the figure at $20 million.

According to the Bendon board, Mr Venter's deal would represent a return to shareholders of between $1.81 and $1.84 a share, depending on how much cash Bendon Group is holding.

Bendon directors have required all bidders to submit binding offers by February 1, after which they are expected to recommend a preferred buyer to shareholders.

Phil Newland, PRG director and group managing director of Cullen Investments, said a constructive meeting with Bendon's independent directors had encouraged its bid.

"Our offer would provide Bendon shareholders with an attractive, certain and immediately realisable proposition.

"Moreover, it is a less risky proposition for shareholders in that they know exactly how much they will receive for their holdings and will not be waiting on a potentially protracted winding-up process."

The offer is for 100 per cent of the shares but Mr Newland confirmed it was not conditional on PRG's actually getting to that level.

"While PRG's preference is to own 100 per cent of Bendon Group it would also be very satisfied anywhere above the minimum threshold of 50 per cent required under the Takeovers Code," he said.

PRG director and director of operations for Cullen Investments, Stefan Preston, said: "Once we have gained operational control we plan to concentrate on unlocking the value of Bendon's leading brands.

"We are confident that, working together with management, we will, over time, be able to achieve just that by improving operating efficiencies and building momentum in international markets."

Also yesterday, speculation was aired in the National Business Review that Australian mogul Solomon Lew was the mystery bidder.

Mr Lew, who with partner Lindsay Fox headed the Tesna consortium to buy failed airline Ansett Australia, could not be contacted for comment.

Opinions varied among analysts, from those who believed Mr Lew would not be a likely bidder to some who said Australian market talk suggested he was involved.

Bendon shares closed yesterday up 1c at $1.93 and PRG shares finished the week at $2.10.