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.