Godfrey Hirst in Talks to Merge with Feltex

Victoria, Australia, June 28--Godfrey Hirst Australia Pty Limited today announced that it has acquired a shareholding of approximately 5.78% in Feltex Carpets Limited through on-market purchases of shares over the last few days, and during a market stand this morning, which is still being executed. Consequently the shareholding is expected to increase during the day. Godfrey Hirst finance director Jim Walsh said that following the acquisition of this shareholding, Godfrey Hirst would look to enter into discussions with the Feltex board about a possible merger of the two companies. "We believe that a merger between Godfrey Hirst and Feltex could have benefits for shareholders of both companies. However, this is the first step in what will be a long, considered process for us. "Given the current serious difficulties Feltex is facing, any merger would be subject to the receipt of further information on the current financial and operating status of Feltex and also subject to any regulatory consents that may be required," he said. Walsh said Godfrey Hirst does not intend, at this time, making an Offer under the Takeovers Code for the remaining shares of Feltex that it does not already own. Godfrey Hirst is a privately owned, fully integrated carpet manufacturer in Australia. Together with its sister company, Godfrey Hirst New Zealand Limited, it is Australasia’s leading manufacturer of high quality carpet in both the residential and commercial carpet sectors. The McKendrick family, originally from New Zealand, purchased Godfrey Hirst in 1966 and still own the company today. The Godfrey Hirst Group exports product throughout Asia, Europe and America. It markets woollen and synthetic carpets under its own name and the Hycraft brand, and has woollen spinning operations in both Australia and New Zealand. Feltex produces more than 17 million square metres (184 million square feet) a year under its own name as well as the Invicta, Redbook and Minster brands, and sells about 75 percent of its production in Australia. It bought the Australian operations of the Shaw Industries Group in March 2000.

Related Topics:Shaw Industries Group, Inc.

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