Veteran corporate raider Sir Ron Brierley has made a takeover offer for cashed-up retailer Kirkcaldie & Stains.
Brierley's Mercantile NZ vehicle is the fourth-largest shareholder in Kirkcaldie, with a 9.9 per cent stake. He intends to offer $2.75 cash a share for the rest of the company, a premium on the $1.65 he last traded the shares at and above the $2.20 he paid to increase his stake in late 2015.
Notice of the takeover came just minutes after Kirkcaldie advised the stock exchange it had completed its cancellation of four in every five shares, shrinking total stock outstanding to 2.05 million from 10.25 million.
The company intends paying $2.3602 per cancelled share on Monday, returning about $19.4 million to shareholders via a scheme of arrangement following the sale of its name and the lease on its Lambton Quay premises to Australian department store chain David Jones.
This week, Kirkcaldie said its residual value was expected to be $3.18 to $3.67 a share once it had completed the capital return, which is based on estimated remaining net assets of $6.5 million to $7.5 million.
Kirkcaldie chairman Falcon Clouston told shareholders at their annual meeting this week that the residual value was dependent on the company's ability to dispose of its remaining leases for sites in Petone, Thorndon Quay and Brandon St, sale of remaining stock and no warranty claims arising from its agreement with David Jones.
There was also a possibility of selling the listed shell company for use as a backdoor listing.
Brierley's offer is conditional on Kirkcaldie making no dividend, bonus or other payments or distributions and on Mercantile gaining acceptances for more than 50 per cent of the stock.
Shares in Kirkcaldie & Stains closed up 67c yesterday at $2.87.