15 Sep 2015

Final days for Kathmandu takeover bid

9:29 am on 15 September 2015

Homeware and sports retailer Briscoe Group is still trumpeting the virtues of its takeover bid for Kathmandu even though it has received precious few takers for its offer, which looks set to fail.

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Shoppers outside one of Kathmandu's outdoor clothing and equipment stores, in Wellington. Photo: RNZ / Alexander Robertson

At last count, Briscoe said it had just over 22 percent of Kathmandu. Its offer of $1.80 in shares and cash per Kathmandu share closes this Thursday.

Briscoe Group managing director and majority shareholder Rod Duke said some Kathmandu shareholders have had stars in their eyes expecting the offer would be increased or extended, but the reality is they will have to take it or leave it.

"As the days have progressed, the offer has clearly become much more attractive to Kathmandu shareholders than it would otherwise have been."

Kathmandu's share price slumped nearly 4 percent yesterday to $1.46.

Mr Duke said, as Kathmandu's major shareholder, Briscoe would be looking for an improved performance from the outdoor goods and clothing retailer, although he was doubtful that was going to happen any time soon.

"I don't have any confidence that the forecast they have out for the 2016 year, which provides for a nearly 50 percent increase in their current performance - we don't believe that's achievable."

Meanwhile, in stark contrast, Briscoe reported an 11 percent rise in its first half profit to $20.5 million, with sales up nearly 5.5 percent on a year ago.

Mr Duke said the company was set to keep outperforming the retail sector.

"We will continue as we have been going for the last four or five consecutive years on a trajectory greater than our peer group."

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