Kirks' to make $19.35M initial return to shareholders 14 Jul 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
- New Zealand food prices fall in February Business
Kirkcaldie and Stains to make $19.35M initial return to shareholders
By Fiona Rotherham
July 14 (BusinessDesk) - Kirkcaldie & Stains, the unprofitable Wellington-based department store owner, has said its first distribution to shareholders pending the sale of the business to Australia’s David Jones would be around $19.35 million or around $1.88 per share. That shares jumped to $2.20 from $1.68 before the announcement. The distribution amount was contained in a notice of special meeting of shareholders sent to the stock exchange this afternoon.
South African-owned David Jones, which runs an iconic chain of Australian department stores, will pay A$400,000 for the Kirkcaldie & Stains name and take over the lease of its store on Lambton Quay, Wellington, with the option to buy the retailer’s assets for NZ$500,000 within 25 working days. The company’s stock, valued at $8.3 million as at May 31, is not included in the sale and the company plans to sell any remaining stock from its Thorndon Quay furniture store.
Shareholders will be asked to vote on two resolutions at the special meeting on July 31. The first relates to the sale and the company ceasing to operate as a department store retail business after 152 years. If the resolution fails, the company said the board would likely continue to explore options for a sale, it said in the notice. If shareholders approve the sale, the only outstanding condition will be the purchaser gaining the necessary consents, for which it has filed, from the Overseas Investment Office by Nov. 30. The note says the board’s legal advice and that of the lessor is that no consents are required but the purchaser elected to be cautious and seek them anyway.
The second resolution relates to approving an early distribution of the surplus cash resulting from the sale of an inner-city building, the Harbour City Centre, adjacent to the Kirks' main store. Because the amount equals the available subscribed capital of the company, it is deemed a major transaction under the Companies Act and requires a special resolution.
If the second resolution is passed, the company says matching the early distribution to the company’s available subscribed capital means it can be received by shareholders tax-free. How it will be paid is still to be decided, with options include a pro rata buyback by the company, providing this doesn’t trigger provisions of the Takeovers Code, or distribution through a court-approved scheme.
David Jones has indicated it will offer employment to most of the existing staff but Kirkcaldie and Stains estimates its redundancy payments will be up to $2 million.
A future distribution is expected when the company is liquidated and should also be tax-free. The board said the precise amount left over “is difficult to forecast”. At least $2 million has to be held in escrow for a year pending any claim by the purchaser under the agreement. While a formal liquidation is most likely, the board said other parties may express an interest in acquiring the company as a vehicle for a backdoor listing before then and that could be an opportunity for shareholders to realise more value.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more