27 September 2006 — Auckland (NZ): Woolworths, the Australian retailer, has acquired a 10 percent stake in Warehouse Group.
Woolworth’s stake in the New Zealand-based Warehouse has effectively blocked founder Stephen Tindall’s buyout plan for the outstanding 50 percent of the company.
New Zealand legislation stipulates that a bidder for Warehouse needs to own 90 percent of all company shares before it can acquire remaining stock.
Foodstuffs, New Zealand’s biggest grocer, already owns a 10 percent stake in Warehouse.
Woolworths acquired its stake for NZ$196 million ($128.3 million), paying as much as NZ$6.50 per share. Earlier this month, Tindall and Pacific Equity Partners had offered to pay NZ$5.75 dollars per share.