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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Sky shares tank on subscriber warning
- Clinton shows she has bite in social media scrap with Trump
- Zespri ordered to reconsider collaborative marketing proposals
- Airways clarifies fee plans, sees average 1.2% rise per airline, up to 30% hike in capital budget
- Reserve Bank bans MediaWorks from media conferences after lockup leak
Most listened to
- NZVCA executive director Colin McKinnon on the deals and divestments of 2015
- Lee Buchheit of US law firm Cleary Gottlieb explains why the crisis in the eurozone may not be over yet
- BNZ CEO Anthony Healy on his bank's falling margins, dairy woes and the mortgage market
- Toulouse School of Economics professor Thomas-Olivier Leautier says electricity retailing would be more profitable if retailers offered real-time pricing but few do
- David Seymour says the government is hypocritical to believe EVs are next big thing but also need help