Colorado Group tells shareholders to take no action on bid
20 Jul '06
4 min read
The Board gave very careful consideration to Affinity's proposals. Discussions were held regarding the process by which the Board could facilitate Affinity's interest in Colorado. A mutually satisfactory agreement on the process was not reached due to Affinity making demands of Colorado that failed to take account of the legitimate commercial interests of Colorado.
At all times the Board responded in a timely and appropriate manner to the approaches made by Affinity. At no time did the Board enter into any substantive discussion with Affinity regarding the terms of a recommended transaction for Affinity to acquire all the shares in Colorado. Any suggestion by Affinity that this was the case is false.
The Board has and will continue to protect shareholder value. If a credible change of control transaction were presented, be it from Affinity or another party, the Board will seek to maximise value for all shareholders. It will not be forced into dealing with any single party on terms and conditions that are uncertain, incomplete or inappropriate.
Shareholders will be provided with an update of the company's business strategy by early August 2006.
Colorado group ltd is a leading national footwear and apparel retailer and wholesaler, with an Australian heritage dating back over 140 years. It operates more than 430 stores in Australia and New Zealand. The group's portfolio of leading brands include Colorado, Mathers, Williams, Pairs, Jag and diana ferrari.
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