Briscoe mails Kathmandu shareholders
BRISCOE GROUP has mailed documents to Kathmandu shareholders confirming its takeover bid earlier this month for the outdoor clothing and equipment company.
The homeware and sports gear retailer wants to purchase the 80.1 per cent of Kathmandu shares it does not already own.
To do that it is offering five Briscoe shares for every nine Kathmandu shares plus 20 cents cash for every Kathmandu share.
Briscoe says the offer equates to $1.80 per share, a premium of more than 40 per cent over the $1.27 low that Kathmandu shares fell to during June.
‘‘By offering a combination of shares and cash we are providing Kathmandu shareholders with the opportunity to share in the benefits we expect will be generated from combining the two retail businesses and forming a significantly larger transTasman retail group,’’ Briscoe’s managing director, Rod Duke, said.
Kathmandu issued a statement saying it stood by its advice to shareholders to take no action while it prepared a ‘‘target company statement’’.
However, sources within the company say there is a feeling among Kathmandu’s institutional shareholders in Australia that the offer is opportunistic, too low and contains too many shares.
It is understood Kathmandu will provide a trading update in its response to the offer. This update must be made by August 7. Its financial year ends on July 31.
Duke said he had not provided financial forecasts in the offer document for the combined group because there was not enough information available about Kathmandu’s trading to forecast its ‘‘with any confidence’’.
‘‘The recent cool weather would presumably have been pretty favourable for them. Last year the Kathmandu directors made a preliminary announcement on August 1 so we’re expecting they will probably do the same this year.’’
Kathmandu shares remained unchanged yesterday at $1.75, up from $1.27 in June but well down from $3.50 a year ago. Briscoe shares were also unmoved at $2.80, having moved largely sideways since the announcement. current outlook