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The Warehouse has "absolutely no intention" of buying Orcon

15 Mar 14

The Warehouse Group has absolutely no intention of being involved in the bid and due diligence activity for Orcon, according to company CEO Mark Powell.

Following media speculation that the retail giant was lining up a bid for the Internet Service Provider, the firm has rejected such claims, issuing the following on the NZX:

“In response to an article that appeared in National Business Review suggesting that The Warehouse Group Limited was a likely bidder for Orcon, Warehouse CEO Mark Powell confirms The Warehouse has “no interest whatsoever” in making a bid for Orcon,” the statement read.

The NBR’s article, dated Friday March 7, claimed that “Orcon is up for sale, and five bidders are in the running, two industry sources tell NBR.

“Three names understood to have submitted indicative bids are 2degrees, CallPlus and The Warehouse.”

Echoing Powell’s comments, Warehouse spokeswoman Joanne Fullam told “The Warehouse Group has absolutely no intention of being involved in the bid and due diligence activity for Orcon.

“The original report in the NBR was published without speaking with us and quickly corrected once we pointed out the error.”

With The Warehouse distancing itself from any potential deal, that leaves CallPlus and 2degrees as the apparent frontrunners.

While refusing to name any companies involved, Orcon CEO Greg McAlister admitted last week: “It’s something we’re moving on pretty quickly.”

The company, sold by Kordia in April 2013 to a buyer group of Kiwi businesspeople headed by Vivid Networks MD Warren Hurst for around $30-$35m, has been vocal in recent weeks about its desire to raise further capital, with McAlister refusing to rule out selling a majority stake in the business.

More updates to follow…

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