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Offeror(s): Mercantile NZ Limited
Independent Adviser(s): Northington Partners Limited (Rule 21)
Offer Date: 15/03/2016
Closing Date: 12/06/2016
Offer Type: Full
On 26 February 2016, Mercantile NZ Limited (“Mercantile”) issued Kirkcaldie & Stains Limited (“Kirkcaldies”) with a takeover notice, setting out its intention to make a full takeover offer for Kirkcaldies. At the time, Kirkcaldies was an NZX-listed shell company with cash assets and a number of residual liabilities, following the exit from its retail business operations in early 2016.
Mercantile’s offer opened on 15 March 2016 at $2.75 for each share.
The directors of Kirkcaldies recommended that shareholders reject the offer on the basis that the shareholders would receive greater value by waiting for a distribution of the assets of Kirkcaldies as a consequence of it being wound up.
The offer period was extended until 12 June 2016 and Mercantile increased its consideration to $3.00 per share.
On 13 June 2016, Mercantile notified the market and the Panel that the offer had lapsed as it did not receive sufficient acceptances to satisfy the minimum acceptance condition.