Sharechat Logo

Ron Brierley rides again, builds 7.2% stake in Smiths City

Friday 28th August 2015

Text too small?

Veteran corporate investor Ron Brierley is sniffing out opportunities in Christchurch-based retail chain Smiths City, which has started closing down unprofitable stores to eke out a lift in earnings.

Brierley’s Mercantile Investment Co and Sandon Capital, whose principal Gabriel Radzyminski also sits on the board of Mercantile, have built up a combined 7.2 percent stake in the retail chain, and will “act in concert in relation to their conduct as shareholders” of Smiths City, according to a substantial shareholder notice filed to the ASX and NZX.

Each fund has built up a 3.6 percent stake, collectively buying 1.89 million shares between Aug. 11 and Aug. 27 at an average price of 52 cents per share, the filings show.

That makes them the third biggest shareholder in the retail chain behind California-based Guaranty Finance Investors with 18 percent, and the Duncan Saville-managed UK fund, Utilico Investors, with about 14 percent.

Sydney-based Radzyminski told BusinessDesk the funds would make a comment on their investment in the coming weeks.

Smiths City this week told shareholders at the annual meeting that sales were down 2 percent in the first four months of the financial year and that plans to keep closing unprofitable stores will continue in what’s become an increasingly competitive environment for traditional bricks-and-mortar retailers.

This year, Smiths City appointed ‘turnaround specialist’ Roy Campbell as chief executive, tasked to improve returns from the retail operation.

Brierley’s interest in Smiths City comes after he beefed up exposure to Wellington’s flagship department store, Kirkcaldie & Stains, which is set to transform into the country’s first David Jones outlet.

Mercantile joined the NZX last month, after Brierley took control of the ASX-listed fund in 2012. He owns about 46 percent of the firm.

Smiths City shares rose 5.6 percent to 55 cents, a two-month high, having declined 3.7 percent since the start of the year.

Mercantile’s shares last traded at 17 cents on the NZX, and 13 Australian cents on the ASX. Sandon’s ASX-listed stock last traded at 89 Australian cents.

 

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report