Christchurch textile manufacturer LWR is inching towards control of fashion management company Pod, after a third major shareholder agreed to sell.
South Island businessman Allan Hubbard has accepted LWR's cash offer of 50c a share for his 3.3 per cent stake, held through Hubbard Churcher Trust Management. Major shareholders George Gould and Kevin Arscott agreed to sell their 24.5 per cent and 5.7 per cent stakes in June. LWR now has just over 40 per cent of Pod shares, but needs to secure 90 per cent before its offer closes on July 26.
Pod independent directors, who include entrepreneur Sharon Hunter, have recommended shareholders accept LWR's offer, which values the company at $22 million. Directors said the offer fell within the 48c to 54c a share value range assessed by Ferrier Hodgson, and that Pod's business model was not the best for the future. Pod director Murray Clarke and chief executive Malcolm Walkinshaw have also agreed to sell their minor share interests.
LWR's June 25 offer was countered by an $8 million bid for Pod's biggest asset, Designer Textiles, from Australian firm The Merino Company. LWR owner Ken Anderson, a Christchurch accountant, said the counter-offer was a "surprising change of direction" from the Australian wool firm.
Anderson said LWR, which he bought in 2001, could enhance Pod's business but he wouldn't go into detail.
Set up in 1904, LWR (formerly Lane Walker Rudkin) is Australasia's second biggest underwear and hosiery manufacturer behind Pacific Brands. The company has more than 1000 staff and is licensed to make, distribute and sell adidas sportswear in New Zealand and Australia. It owns the Stirling Sports clothing chain in conjunction with Anderson's son, Mark, and the Champions of the World, which sells rugby gear.
Pod has three main operations: Design Textiles International, which makes fabrics, Michele Ann, a clothes designer for retail chains including Farmers and Max Fashions, and Mollers Homewares.
