Hellaby plans $50m shopping expedition

Investment company Hellaby Holdings is looking to raise $50 million through capital notes as it readies for acquisitions.

David Houldsworth, managing director, said: "We feel if the economy continues to slow there will probably be more opportunities coming along in the next 12 months."

The five-year notes would be listed on the NZDX - the stock exchange's debt market.

They would be unsecured, subordinated, fixed-interest debt obligations of Hellaby, with a fixed interest rate of 8.5 per cent a year.

Houldsworth said the money would be used to reduce company debt in the short term and then fund growth.

The investment company, with holdings in the automotive, industrial and retail sectors, started to build up its coffers last month with the planned sale of its upmarket menswear chain, Rodd & Gunn, for $13.6 million, a profit of more than $6 million.

Approval of the sale, to Gunn's chief executive and 15 per cent shareholder Michael Beagley, will be sought at a special meeting of shareholders next month.

An independent appraisal by valuers Grant Samuel has already concluded that the transactions were fair to Hellaby shareholders, given Beagley is also chief executive of Hellaby's shoe store chain Hannahs.

Hellaby's owns nine companies including The BBQ Factory, Hannahs, Brake & Transmission New Zealand, Diesel Distributors and Levana Textiles; it has stakes in the Number 1 Shoe Warehouse, New Zealand Wool Services and Bombay Petfoods.

Houldsworth signalled future acquisitions were likely to be in the industrial, automotive and general distribution industries, where the company had been strong in the past.

The arrival of colder weather had boosted Hannahs and No 1 Shoe Warehouse over the last few weeks.

Hellaby shares closed up 5c at $4.35 yesterday, having ranged between $4.10 and $6.22 in the last year.