International jewellery retailer, Michael Hill, was founded in Whangarei but is soon to become officially Australian. Now based in Brisbane, Michael Hill is seeking shareholder approval to list on the stock exchange of its most lucrative market.
The company operates 168 Michael Hill stores across Australia as well as 14 Emma & Roe stores while it aims to open 15 to 20 more a year. The board believes an ASX listing is a logical next step for the company.
Australia represents the company’s largest market with an increase in revenue of 3.5 percent in the nine months to March 31. Same-store group revenue in the same period increased 5.1 percent to $A397 million while overall store sales increased 9.1 percent to $A420 million.
A report lead by independent advisor KordaMentha revealed that there was a potential one-off tax benefit to Michael Hill where the tax base of certain assets was reset. The benefit is forecast to be between A$10 million an A$22 million.
The transaction has been approved by the High Court, which will see the Australian parent company acquire all the issues capital through an exchange of share on a one-for-one basis. They will keep a secondary listing on the NZX.
The company is holding a shareholders meeting in Auckland later this month to distribute information about the scheme and get approval. The Michael Hill board unanimously recommends that shareholders vote in favour of the listing.