Briscoe Group’s attempted takeover of Kathmandu is getting increasingly hostile, with neither side backing down. Briscoe said yesterday it wouldn’t increase its offer any higher and that shareholders should take it or leave it. But Kathmandu’s board today are still urging shareholders to reject it.
In a response to Briscoe Group’s statement yesterday, Kathmandu’s board said the offer was inadequate and didn’t reflect the value of the company.
An independent assessment of Kathmandu by Grant Samuel put its value at between $2.10 and $2.41.
It said under the Financial Markets Conduct Act, a company has to tell the market any change in its listed securities when there’s an acceptance of one or more percent of a takeover offer.
As of the 2 September, Briscoe hadn’t notified the NZX, so the Kathmandu directors said the offer should be rejected.
Briscoe is offering $1.80 per share in cash and scrip. It will also give five of its own shares for every nine Kathmandu shares, plus 20 cents cash.
The offer expires on September 17. Briscoe Group says it won’t extend the offer, unless the offer becomes unconditional as to level of acceptances.
“Briscoe Group considers that its offer price is attractive, and sees no reason to increase it. It encourages all Kathmandu shareholders to lodge their acceptances as soon as possible,” it said in a statement.
Briscoe is set to announce its half year results on 14 September.
Kathmandu is also due to complete its review of its head office structure by the end of the month.
The review could cut top management employees in New Zealand and Australia by as much as 10 percent.
Chief executive Xavier Simonet said the review was to address Kathmandu’s recent less-than-stellar performance.
Kathmandu’s shares as of today sit at $1.65, while Briscoe shares are $2.80.