Kathmandu hasn't reported any price sensitive information since posting its half-year result on March 24. Photo / Natalie Slade
Kathmandu hasn't reported any price sensitive information since posting its half-year result on March 24. Photo / Natalie Slade
Kathmandu shares soar as Rod Duke plans takeover offer for struggling retailer.
Briscoe Group managing director Rod Duke says he is "excited by the potential" as his plans for a takeover of Kathmandu sent the struggling outdoor clothing retailer's share price soaring.
Briscoe Group, which owns and operates the Briscoes, Rebel Sports and Living and Giving chains boosted its 4.99 per centstake to 19.9 per cent after buying stock from several institutional shareholders.
If successful the takeover would give Briscoe Group access to the Australian market, where Kathmandu already has 100 stores.
"The takeover document is imminent and we're keen to proceed," Duke said. "We have 19.9 per cent and we're very excited about the prospect."
Kathmandu stock rose as much as 29 per cent during trading today to $1.80 - a four-month high and the price Briscoe paid institutions for the additional 14.91 per cent of stock - before eventually closing up 25.9 per cent at $1.75.
Briscoe built its stake without contacting Kathmandu, which said it would not comment on the imminent cash and scrip offer.
"I am excited by the potential that would arise from bringing together these two iconic retailers - we each have strong and recognisable brands that I see as complementary," Duke said.
Matthew Goodson, managing director at Salt Funds Management, said Duke had proved he could do an exceptional job.
"Kathmandu clearly has some challenges and it will be very interesting to see if his expertise in a slightly different but similar part of retailing can be successfully translated across," Goodson said.
"A lot of people would back him."
Kathmandu has been struggling over the past year, posting a first-half-year loss of $1.8 million for the six months ending January 31, down from a profit of $11.4 million a year earlier.
Retail guru Rod Duke, chief executive of retailer Briscoes, which runs the Rebel Sport and Briscoes chains. Photo / NZ Herald
At that time, Kathmandu acting chief executive Mark Todd said the result was disappointing but hoped the company would be able to claw back this loss in its Easter trading - traditionally the company's biggest trading period.
Some 31 million shares changed hands yesterday - the biggest one-day volume since former owners Goldman Sachs JBWere and Quadrant Private Equity took the company public in 2009, selling their entire interest.
Kathmandu was originally built up by founder Jan Cameron. The retailer has 157 stores across New Zealand and Australia and as at close of trading today had a market capitalisation of $352.6 million.
