Brierley's Mercantile crosses 90% threshold in Wellington Merchants takeover

Thursday 6th October 2016

Ron Brierley's Mercantile NZ has crossed the 90 percent threshold in its takeover bid for Wellington Merchants, formerly known as Kirkcaldie & Stains, triggering provisions to mo-up the remaining shares.

As of yesterday, 80.2 percent of the shares in Wellington Merchants had been sold to Mercantile under the takeover offer which, taking its holdings to 91.1 percent, a notice to the stock exchange shows. That means Mercantile can enforce compulsory acquisition of the remaining stock under the Takeovers Code.

In August, Mercantile offered $3.45 per share, an uplift from previous offers of $2.75 and $3 made in March and June respectively. Kirkcaldie changed its name to Wellington Merchants in July. A month later, Wellington Merchants' directors recommended shareholders accept the offer, which they described as attractive.

The former Kirkcaldie site on Wellington's Lambton Quay is now occupied by the first New Zealand branch of Australian retailer David Jones. The cashed-up Merchants had to exit lease obligations on other properties before it could settle on the amount available for distribution to shareholders.

The shares, still listed on the NZX, last traded at $3.40, and have gained 118 percent this year.

BusinessDesk.co.nz

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