Adventure clothing retailer Kathmandu is going to court to try to recover costs associated with last year’s attempted hostile takeover bid by Briscoe.
The company lodged the claim, for what Kathmandu says are significant costs, in the New Zealand High Court.
A short time ago, Kathmandu shares were trading at $1.405 on the ASX, up 0.7%.
Under Rule 49 of the New Zealand Takeover Code, the company is seeking to recover expenses of $NZ2.67 million.
Kathmandu says Briscoe, a New Zealand retailer, has already made a payment of $NZ637,711.65. Briscoe is major shareholder with 19.9% of Kathmandu.
“Kathmandu considers the full amount claimed is recoverable and has issued legal proceedings for the balance of monies owed,” says Kathmandu CFO Reuben Casey.
Kathmandu in August rejected the $A324 million takeover bid by Briscoe as inadequate and “highly opportunistic”.
“Briscoe can afford to offer a lot more for your shares,” Kathmandu directors then said in a note to shareholders. “The timing of the offer is highly opportunistic.”
At that time Kathmandu’s earnings were falling but it has since returned to profit.
In March it posted a first half profit of $NZ9.41 million, up more than 600%, compared to a loss of $NZ1.8 million for the same period a year ago.