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.