Tuesday 27th March 2012
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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.
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