Meanwhile, other shareholders are also getting behind the bid, preferring to back an offer that could salvage some of the value lost since flotation. Godfrey Hirst gets a $1 million break fee if Feltex accepts an alternative proposal.
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The board - which has agreed to make the books available to Godfrey Hirst - has yet to agree.įeltex said last night: "We had a meeting today but there is no outcome to report."įeltex said on Tuesday it was free to consider any other offer until shareholders voted next month on the Godfrey Hirst proposal. The brothers yesterday met the Feltex board to convince it to open the books to assess the viability of their bid. The Turners also say they have the support of an unnamed bank to take over the financing of Feltex should the ANZ wish to get out. The issue would give existing investors the opportunity to enjoy any Feltex recovery. Under their plan, Feltex would issue preference shares, which would have the same rights as existing shares but would have prior ranking in a wind-up. The Turners reckon Feltex needs $35 million to $40 million to put it back on an even keel and have been inundated with support. This is a substantial decline on the 2004 float price of $1.70 a share and reflects Feltex's struggle to recover from a sharp downturn at the start of 2005.įeltex shares yesterday rose 0.4c to 10.8c Under their terms, Feltex will leave the NZX and any proceeds above its $128 million borrowings will be returned to shareholders.įeltex chairman Tim Saunders has said shareholders would get 9c to 12c a share under the Hirst proposal. Their bid rivals another from Australia's Godfrey Hirst, which has agreed to pay $141.8 million for the company. They are seeking other investors to put up similar sums, and are talking to several institutions and advisers. They want to underwrite a third of a rescue rights issue and keep the business listed on the NZX. The Turners - part of the family behind the Sleepyhead bedding group with an estimated fortune of $70 million - this week disclosed their plan to rescue Feltex. "This business has a wonderful brand, it has a good dealer network and it is a good fit with what the Turners do." "We have made a commitment for a substantial sum," Cook said. He would not disclose how much he wanted to put in but said the brothers could turn the business around.
Another rich-lister has joined Graeme and Craig Turner's bid to rescue the ailing carpet-maker Feltex.Ĭliff Cook - who made his fortune of $200 million, according to the NBR Rich List, building up and then selling retirement home operator Metlifecare - is prepared to back the Turners.
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