New Zealand retailer the Briscoe Group is offering cash and shares to the value of $NZ1.80 for each share in Kathmandu in a takeover deal worth about $A324 million.
The combined companies would have annual sales across New Zealand and Australia of $NZ900 million. Kathmandu has been suffering from poor sales.
The offer is for five Briscoe shares for each nine Kathmandu shares plus a cash amount of NZ$0.20 for each Kathmandu share.
Briscoe, also an adventure clothing retailer, says the offer is a premium of about on-third when compared to Kathmandu’s share price on June 29.
“The offer is an opportunity for Kathmandu shareholders to receive a premium for their shares in Kathmandu and to share in the benefits that would arise from being a shareholder in a larger and more diversified retail group,” Briscoe managing director and majority shareholder Rod Duke said.
Today Kathmandu shares are trading more than 3% down at $1.52, but above the week’s low of $1.22. The shares jumped about 22% Tuesday on news of the takeover.
Briscoe, a listed company in New Zealand, would also get a back door listing on the ASX from the takeover.