Sharechat Logo

Kathmandu accepts oversubscriptions in share purchase plan, raising $50M

Wednesday 18th April 2018

Text too small?

Kathmandu Holdings will take up the full oversubscription in a share purchase plan, raising $50 million to help fund its purchase of US footwear supplier Oboz Footwear. 

 

The Christchurch-based company today said it accepted $2 million in oversubscriptions for its share purchase plan, taking total subscriptions to $10 million. That's on top of $40 million raised from institutional investors in a placement. Shares were sold in both offers at $2.16 apiece, a 10 percent discount to where the shares traded before the announcement. The shares fell 0.4 percent to $2.55 today. 

 

"We are delighted with the extent of support, both for our institutional placement last month and for the share purchase plan, and the affirmation by our shareholders of our growth plans for the business," chair David Kirk said in a statement. "The board would like to thank all those shareholders who participated in the SPP for their continuing support of Kathmandu." 

 

The capital injection will be used to help pay for the US$60 million upfront purchase of Oboz, which Kathmandu pursued to expand its presence in the North American outdoor market. If the acquisition meets certain earnings targets in calendar 2018, Kathmandu will pay up to US$15 million more. 

 

Some 1,516 Kathmandu shareholders of its 3,514 investors sought to participate in the share purchase plan, offering $14.5 million, meaning their offers will be scaled. 

 

Briscoe Group, which made a failed takeover bid in 2015 when it built up a 19.8 percent stake, participated in both the institutional placement and share purchase plan. 

 

(BusinessDesk)

  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:

NZ dollar rises against Aussie, Chinese yuan
Geothermal production drives record Eastland earnings, payout
RBNZ to announce final decision on bank capital rules by November
Licensing key to medicinal cannabis firm Cannasouth's ambitions
PwC says NZ banks would effectively hold 27.1% equity if RBNZ proposals are adopted
Terra Vitae says poor harvest to hit sales, earnings
Weak services sector growth raises concerns about NZ economic slowdown
National sticks to bob-each-way on US-China relations in new policy paper
Kiwi Property lifts annual profit 15% as valuations rise
Kiwi Property lifts annual profit 15% as valuations rise

IRG See IRG research reports