Kathamndu shares soared 22% as the Briscoe Group grabbed a 19.9% strategic stake and prepared a full takeover offer for the adventure retailer.
The New Zealand travel and adventure clothing and equipment group says it added a 14.91% shareholding to its 4.99% stake by buying from a number of institutional shareholders at $NZ 1.80 a share.
Briscoe says it intends to lodge a takeover notice.
Rod Duke, managing director and Briscoe majority shareholder, says he’s excited by the potential of bringing together the two iconic retailers.
Kathmandu, which has been suffering from poor sales, says it has had no contact with the New Zealand company.
The adventure clothing retailer posted a half year loss of $NZ1.8 million after a promotional campaign failed to produce sales over Christmas and January. The result, on a 7% increase in sales to $NZD179.4 million, was 115.8% down on the same half in 2014 when Kathmandu posted a $NZ11.4 million profit.
Kathmandu shares closed yesterday at $1.25, down from a high of $3.25 a year ago.
Today the shares were up 22% to $1.53.