Michael Hill confirms plan to move primary listing to ASX

The retailer grew revenue and earnings in Australia, its largest unit, after posting weaker earnings last year. Photo / NZME
The retailer grew revenue and earnings in Australia, its largest unit, after posting weaker earnings last year. Photo / NZME

Michael Hill International confirmed it will go ahead with plans to list its shares on the ASX, given most of its operations are now based in its dominant market of Australia and its financial reports are in Australian dollars.

The Brisbane-based company will list through a 'scheme of arrangement' which will see a new Australian parent company acquire all the shares through an exchange of shares on a one-for-one basis, it said in a statement.

The new company will have its primary listing on the ASX and will also maintain a listing on the NZX, it said.

"Over time this will provide the company with direct access to a wider group of investors than we currently enjoy and we believe this will be to the benefit of all of our shareholders," chair Emma Hill said.

"On a day-to-day basis we will have all of our governance, executive and business operations operating in one jurisdiction and this will considerably simplify our structure."

The change requires approval from shareholders, New Zealand's High Court, the ASX and the NZX.

KordaMentha will provide an independent report to shareholders as part of the approval process, and this is expected to be sent out next month along with an information memorandum outlining the proposal.

A special meeting of shareholders will be held on June 1 in Auckland, with approval needed from 75 per cent of shareholders entitled to vote and voting in each 'interest class' as well as an overall 50 per cent majority vote of all shareholders.

If the plan is approved, the ASX listing will be in place from the start of the new financial year on July 1, and shareholders will be able to choose whether to trade their shares on the ASX or NZX, the company said.

Michael Hill shares last traded at $1 and have gained 1 per cent this year.

- BusinessDesk

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