Briscoe's biggest sale hit by market turmoil

Retailer Briscoe Group says its long-expected share float has been put on hold until the fallout from last week's American terrorist attacks subsides.

The group, which owns homeware retailer Briscoes and the Rebel Sports chain in New Zealand, said yesterday that the offer, for 40 million shares at an issue price of around $1 a share, would go ahead "as soon as a reasonable level of stability returns to the financial markets".

Under the proposed terms of the offer, managing director Rod Duke's RA Duke Trust will reduce its holding in the company from 100 to 75 per cent through a series of moves that include the offering of 40 million new ordinary shares to the public and employees.

The new shares will represent 19 per cent of the 210 million shares on issue after the float.

The timing and pricing of the issue have yet to be set.

Directors said yesterday that the money raised through the float would be used to modernise the company's Briscoes Homeware stores and to expand its Rebel Sport chain from 11 to 21 stores.

They said the proceeds would also be used to repay a shareholder advance and to allow the group to pursue other opportunities in retailing.