I don't think it will be another bidder. Brisco has 19.9% so it can block any takeover unless the offer is very very good.
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I vote reverse takeover! Or at least buy 19.9% of Briscoes then make them offer more for a takeover haha!
Will Aussies want shares in Briscoes, a tiddly little nz discount retailer?
Instos will get the big picture but retail unvestors?
Rod said most of the shares he got were from Aussie instos, the clever ones who took the opportunity to quit this dog at a good price -ang getting cash
Give Rod his due to taking the opportunity to try and get Kathmandu for what many perceive to be a cheap price.
That's what happens when you stuff things up, have too much stock, borrow too much money and slash your margins like Kathmandu have done - you open yourself up to predators who think they can do it better and come and buy you out.
Jury out whether Kathmandu can sort out the problems themselves, maybe or maybe not. Can Rod and his team, he obviously thinks so and needs a bit of headroom (risk) to do it.
KMD shareholders should count themselves very, very fortunate to be in the position they are...could have been much worse if Rod hadn't come along and turnaround targets weren't met....could easily have gone under $1.00 IMO.
Economy is hardly performing like a rock star is it !! (See latest dairy auction result overnight). Don't like BRG shares ?, take the money (low $1.70's), and buy something else.
You want to blame someone for your losses if you paid over $1.80 ?, blame management and directors.
I don't mind Briscoes shares its just I won't be getting enough of them under the proposed offer to get near breaking even on my KMD entry of $2.80 so will see what eventuates.
"At this stage Kathmandu is not in a position to comment further. The Board of Kathmandu will meet shortly to consider the takeover notice and draft offer in detail.
Until the Board of Kathmandu has given further guidance, shareholders are strongly advised to take no action in relation to Briscoe’s notice of intention to make a takeover offer.
Kathmandu is being advised by Goldman Sachs."
Well worth waiting to hear KMD's comments before taking on the offer. Will be intersting to hear what they have to say - a market update on current years earnings would be very helpful.
That update will come when it best suits them and when GS say so.
Been boom times in KMD methinks, stocks down and margins restored so H2 will save the year and it looks like $30m
If the first half had been nprmal the full year would have been $50m .....so take that and suck your eggs you Briscoe guys
I'm not totally convinced of this offer.
Lets say we do get our 5 BGR shares for every 9 KMD shares, then there would be some share dilution involved?
I also hope the BGR share issue takes place after us KMD holders get our full year dividend. If not, then the next BGR dividend better make up for it.
personally, 7/9 and 25cps for the next 40% is affordable for Mr Duke and he'd end up with 55-60% of both BGR and KMD. TBH, he also has to prove himself in the australian market where kmd is. kmd will be getting an independent valuation which on current data was $1.90 (morningstar). if 2h numbers are better then anything up to $2.50 is possible hence my numbers
There is a two week Notice and Pause requirement before you get the actual offer
here's a reference guide on T/O's, for anyone who is interested in understanding what happens
http://www.takeovers.govt.nz/assets/...5-hardcopy.pdf
Yeah 25cps cash sounds more reasonable. In case we miss the KMD full year dividend, it'll make up for it, assuming the dividend is at least 5cps, but as history shows, it would probably be 7c.
Rod Duke is just doing what he has to. Starting his bid low at $1.80.
I would be surprised if the KMD board accepted this. Let them bargain it out.
This is good....we need a good takeover scrap to entertain those of us on the side-lines :D