Kirkcaldie hires advisers to look at spinning off property unit after sale falls through

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Kirkcaldie & Stain's, the unprofitable Wellington department store operator, said it has hired advisers for the possible spinoff of its property-owning unit, whose asset exceeds the market value of the company.

The move comes after a mystery buyer for its Harbour City Centre on Wellington's Lambton Quay, valued at $46.5 million, walked away from the deal this month.

Kirkcaldie has "appointed external parties to provide advice to the company on the corporate restructuring options to facilitate the separation of Kirkcaldie & Stains Properties," it said in a statement.

"If the restructuring proposal proceeds, it is likely to involve shareholders receiving shares in Kirkcaldie & Stains Properties and holding shares in both companies," it said.

Shares of Kirkcaldie last traded at $3.05, valuing the company at $31 million. The unrecognised value in the company's property assets are lured investors including veteran corporate raider Ron Brierley and former associate Selwyn Cushing.

Any restructuring would be subject to shareholder approval. The company plans to give an update in either late January or early February.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

3 Comments & Questions

Commenter icon key: Subscriber Verified

Better, surely, for K&S to spin off the dog retail operation?? !!

Reply
Share
  • 0
  • 0

K&S department store once was a Wellington icon - they passed the baton to Moore Wilsons quite some time ago and their customers now mostly receive the pension

Reply
Share
  • 0
  • 0

I like this move a lot. Good work by the board. Look forward to holding the property shares.

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7716 0.0092 1.21%
AUD 0.9635 -0.0055 -0.57%
EUR 0.7035 0.0023 0.33%
GBP 0.5038 0.0028 0.56%
HKD 5.9815 0.0726 1.23%
JPY 91.7340 0.9100 1.00%

Commods

Commodity Price Change Time
Gold Index 1201.9 22.820 2015-04-27T00:
Oil Brent 64.8 1.410 2015-04-27T00:
Oil Nymex 57.0 -0.190 2015-04-27T00:
Silver Index 16.4 0.754 2015-04-27T00:

Indices

Symbol Open High Last %
NZX 50 5765.4 5790.5 5765.4 0.07%
NASDAQ 5063.3 5075.3 5060.2 -0.10%
DAX 12035.6 12047.4 12039.2 -1.89%
DJI 18035.9 18119.7 18038.0 0.40%
FTSE 7104.0 7104.0 7104.0 -1.03%
HKSE 28448.2 28548.5 28433.6 0.03%
NI225 20068.7 20133.8 19983.3 0.38%