Not enough of The Warehouse shareholders have supported a buyout attempt by an Australian firm, and the sale will not go ahead. Photo: Rafael Ben-Ari/Chameleons Eye/ 123rf
New Zealand's biggest listed retailer is not going ahead with a proposed takeover from an Australian private equity group.
The Warehouse Group said the proposed $590 million takeover bid, which had backing from the retailer's founder Sir Stephen Tindall, did not have the required shareholder support.
It said a key shareholder told the company it did not support the current terms by Adamantem Capital, meaning it would not have the required 75 percent approval from shareholders for the deal.
The group, which is the owner of The Warehouse, Warehouse Stationery and Noel Leeming, did not name the shareholder.
Sir Stephen and the Tindall Foundation owned 48 percent of the Warehouse Group, while the James Pascoe Group (owner of Pascoes), owned nearly 20 percent.
"The current scheme of arrangement doesn't have the critical shareholder backing it needs to proceed," the group's chair Dame Joan Withers said.
"With that in mind, the board has decided to defer further talks until such time as the proposal receives wider shareholder support."
Dame Joan acknowledged the takeover interest from Adamantem Capital.
"However, without broader shareholder support, it is not prudent for us to pursue this proposal further," she said.
"We're committed to acting in the best interest of all our shareholders. While the board has not yet formed a view on value, we're open to continue discussions if a further proposal generates shareholder support sufficient to make its execution viable."