The family behind furniture retailer Nick Scali, founded 50 years ago, has sold down its interest in the company for about $70 million.
However, family interests associated with Anthony Scali, the managing director, increased their holding to 27.3% from 16.7%.
“I am delighted that the Scali family will remain the largest shareholder in NSL (Nick Scali Limited) and that my economic interest in the company has increased, demonstrating my confidence in the long term prospects for the business as we continue to pursue our strategy,” said Anthony Scali.
Nick Scali senior, who founded the company and is now 82 years of age, also announced his plan to retire from the board of directors at the 2016 AGM.
The Scali family has held a 50% stake since listing. Anthony Scali and his two siblings, Nicky and Yvonne, each held a 16.7% economic interest for the last ten years.
The family today completed the sale of 18.4 million shares at $3.80 each, representing 23% of the company to institutional investors, bringing in about $70 million.
Chairman John Ingram says the transactions reflect the generational change over the past several years where Anthony Scali has increasingly put his stamp on the business he has so successfully led for more than 25 years.
The company is doing well, posting a 40.7% rise in first half profit to $14.1 million on revenues of $102.5 million, up 32%. Anthony Scali is maintaining full year profit guidance in the range of $22 million to $24 million.
Nick Scali plans to open another four to six stores this year to add to its network of 48 across mainland Australia.