Move may herald fresh takeover bid

Ted Van Arkel
Ted Van Arkel
The appointment of Ted van Arkel to the board of The Warehouse Group could again open the way for Australian supermarket giant Woolworths to launch a takeover bid for the Red Sheds.

Mr van Arkel declined to comment on that question when it was posed to him yesterday by the Otago Daily Times.

Woolworths and Foodstuffs New Zealand each hold just below 10% of The Warehouse, but a High Court decision that cleared the way for Foodstuffs and Woolworths to acquire The Warehouse was overturned by the Court of Appeal in 2008.

To get control of The Warehouse, a takeover bid would require founder Sir Stephen Tindall to sell his interests, which make up 52% of the company.

The Warehouse cancelled the rollout of the "Extra" concept stores, which sold fresh produce, frozen foods and meat, a move which was thought to have removed a major barrier for any potential deal with a grocery chain. There had been concerns a takeover would further reduce grocery sector competition in New Zealand's highly concentrated market.

Mr van Arkel has a formidable reputation both as a former managing director of Progressive Enterprises, which is owned by Woolworths, and as an independent director on several boards, including being the chairman of Restaurant Brands and Charlie's Group.

He told the ODT he had known Sir Stephen and chairman Graham Evans for a long time.

Mr van Arkel had worked with both - Sir Stephen, through George Court, and Mr Evans through Woolworths.

Mr van Arkel becomes a director on The Warehouse board on July 1 but said he had been talking to company officials for two or three months about the appointment.

"I am excited to be able to join Sir Stephen, Graham Evans and the others on the board."

In 2007, Mr van Arkel was quoted as saying about once a month he dialled the Pizza Hut 0800 number to order a Hawaiian pizza for himself and a seafood flavour for his wife.

Yesterday, he said he still did that to keep an eye on the quality of the pizzas and he also had been shopping at The Warehouse regularly before taking up his appointment.

Craigs Investment Partners broker Chris Timms said the appointment of Mr van Arkel could pave the way for Woolworths to negotiate a takeover bid for The Warehouse.

"The board will be looking for someone who is reasonably forward thinking. The Warehouse is quite a mature company and will need some fresh thinking.

"Mr van Arkel's approach with Charlie's has been successful and he has made good progress with Restaurant Brands.

"Maybe we are reading too much into this, but the links are hard to ignore," he said.

Yesterday, Charlie's secured an agreement to stock its premium Phoenix Organics Brand on the chilled shelves of 750 Coles supermarkets across Australia. The deal follows the recent successful introduction of the Charlie's brand to Coles in 2010.

Mr van Arkel said he could not claim the credit for that success, even though he continued to have good contacts in the Australian supermarket industry.

"Being chairman is a different role. We engaged good people on the ground over there."

Charlie's managing director Stefan Lepionka had driven the campaign into Australia and both Woolworths and Coles were encouraged the company could continue to deliver products which met their requirements.

In addition, Charlie's Group had agreed with BP to trial a selection of products from both brands in 205 BP company-owned service stations across Australia over the next six months, Mr van Arkel said.

The rollout had just started and would be completed by the end of the month.

In a statement, Mr Evans said Mr van Arkel possessed a strong retail background and director experience across a broad range of industries. His skills and experience would be a valued addition to the overall mix of skills and experience on The Warehouse board as it continued to implement its succession plan.

Mr van Arkel said he was at this stage observing the board and company and was not rushing to make any judgement.


Van Arkel file 

• Ted van Arkel is chairman of Charlie's Group and has been involved with the company since its listing on the NZX.

• He is also chairman of Restaurant Brands, which operates KFC, Pizza Hut and Starbucks Coffee in New Zealand.

• Mr van Arkel is a director of several public and private companies, including the National Property Trust, Allied Work Force Group Ltd, Paper Plus NZ, Danske Mobler and La Grouw Corporation Ltd.

• Before becoming a professional director, he was managing director of Progressive Enterprises. He retired from that company at the end of 2004 after the successful integration of Woolworths (NZ) Ltd.

• Mr van Arkel has more than 45 years' experience in the retail and wholesale sector. 


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