20 Dec 2010

Founding family seeks control at Michael Hill

5:48 pm on 20 December 2010

Michael Hill International has received a takeover offer from interests associated with its founder and major shareholder.

Durante Holdings, a privately-held entity representing the Hill family, already holds 47.6% of the company.

Now it plans to bid for up to 50.2% and will offer 90 cents per share, valuing the company at about $344 million.

Stockbroker Grant Williamson of Hamilton Hindin Greene says the offer was signalled earlier this year, as the family consolidated its holdings.

A committee of independent directors at MHI will commission an appraisal report on the offer. Shareholders have been advised to wait until they receive it, before taking any action.

The company also plans to update shareholders on its Christmas trading period and the effect on its half-year results.

MHI's share price rose 2c to 87c on Monday.