Mercantile NZ Ltd.’s takeover bid of Kirkcaldie & Stains lapsed last week after shareholders were urged to not sell their holdings by the board of the company. The company is to be dissolved over the course of 2017.
Mercantile’s offer of $3.00 per share was an increase of the original offer of $2.75 per share made in March, 2016.
In a statement to shareholders, Kirkcaldie’s provided a high and low value scenario in reference to the Mercantile offer of $2.75. Respectively, these were $3.49 and $2.99, making even the updated Mercantile offer only 1 cent higher than the worst case scenario.
Kirkcaldie’s low scenario of $2.99 was calculated with the worst case view for the company, whereby it would be obliged to continue to pay rent and outgoings for their lease for the remaining term of seven years.
David Jones, which is opening its first international store on the site in July, has taken over the lease and paid $400,000 cash for the Kirkcaldie & Stains brand name.
The company’s two remaining leases, Thorndon Quay and Pantry have each respectively been transacted in a sub-lease agreement and lease surrender, with the board having no reason to believe these two arrangements won’t proceed without difficulty.
In light of these transactions, the company has revised upwards both the low and high end estimates of available cash for distribution to shareholders to $3.60 for the high and $3.50 for the low.
The Kirkcaldie & Stains brand has a rich 153-year history in Wellington, after being founded by John Kirkcaldie and Robert Stains with £700 capital. The Wellington Museum is hosting an exhibit to keep it alive for just a little longer.