Tuesday 27th March 2012
|Text too small?|
Kirkcaldie & Stains has ended discussions with a potential buyer of its unprofitable retail business, saying the parties have “substantially different” views on the unit’s value.
The Wellington-based company said it won’t hold any further discussions with J C Capital, which was arranging an offer to buy the retailer’s flagship department store. The offer emerged last year.
“At this stage the board has a substantially different view on the value of the retail business from that of J C Capital,” chairman Falcon Clouston said in a statement. “The board is not proposing any further discussions at this stage.”
The retail unit has been unprofitable for the past two years, and made a loss of $465,000 in the 12 months ended Aug. 31. The group posted a loss of $56,000 in the year as the property unit offset those losses.
As well as its flagship store on Lambton Quay, Kirkcaldie’s owns the Harbour City Centre, a historic six-floor retail and office building next door, which is currently being earthquake strengthened.
The shares last traded at $2.75 apiece, valuing the company at $28.2 million.
No comments yet
Kirkcaldie property sale falls through after buyer walks away
Mystery bidder for Kirkcaldie misses due diligence deadline
Kirkcaldie shares surge on property sale announcement
Cushings edge closer to takeover threshold in Kirkcaldie
Kirkcaldie mulls further property development
Kirkcaldie buyer yet to make firm offer
Interest sparked in ailing Kirkcaldie's retail business
Kirkcaldies cuts guidance by 15%