Kirkcaldie & Stains Limited
Transaction Type: Takeover (Full)
Offeror: Mercantile NZ Limited
Independent Adviser(s): Northington Partners Limited (Rule 21)
Offer commencement date: 15/03/2016
Offer closing date: 12/06/2016
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 all the shares in 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 cash for each share.
The directors of Kirkcaldies recommended that shareholders reject the offer on the basis that shareholders would receive greater value by waiting for a distribution of Kirkcaldies' assets after liquidation.
The offer period was extended until 12 June 2016 and Mercantile increased its consideration to $3.00 per share.
On 13 June 2016, Mercantile announced that the offer had lapsed as it did not receive sufficient acceptances to satisfy the minimum acceptance condition.