Kathmandu Holdings Limited (ASX:KMD) has acknowledged that there will be no increase in the offer price or extension on the offer period for the takeover bid from Briscoe Group (NZX:BGR).
Briscoe Group stated its intention to lodge a takeover bid to Kathmandu shareholders in late June this year. Kathmandu’s share price rallied 25 per cent on the day of the announcement. The offer was for five shares for every nine of Kathmandu shares and NZ$0.20 cents for each Kathmandu share. Kathmandu Directors believe the offer implies a share value of NZ$1.80 and have concluded that the underlying value of Kathmandu shares are in the range of $2.10 to $2.41.
In the announcement Briscoe Group states that there will be no increase in the offer price and it will not extend the offer period, unless the offer becomes unconditional as to level of acceptances. The offer closing date will remain 17 September 2015. Briscoe Group considers its offer price attractive and therefor sees no reason to increase it.
Under the Financial Markets Conduct Act, a company is required to announce to the market any change in its aggregate interest in listed securities, where acceptance in respect of an offer representing 1% or more are received. As at 2 September 2015, Briscoe Group has not announced the receipt of any acceptance of more than 1% in relation to the offer to the New Zealand Stock Exchange.
The directors of Kathmandu have avidly recommended that shareholders reject the offer, as they believe it to be inadequate and not reflective of the underlying value of Kathmandu.
Author: Ben Visser
Sep 03, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.