Upmarket Wellington retailer Kirkcaldie & Stains [NZX: KRK] says both the front and rear buildings of its Harbour City Centre property will be sold in a single sale and purchase agreement, rather than separately. The stock climbed 6.1 percent before the announcement, made after the close of trading yesterday.
The stock rose 13 cents on small volumes to $2.25 ahead before the statement yesterday. Due diligence of the new deal is expected to be completed next month, though that may be extended, after which Kirkcaldie will announce the full details.
"The net effect of the new agreement is that the properties will be sold at the same time, as the properties are no longer required to be separated," the company said in a statement. "The new agreement is only conditional on the purchaser carrying out due diligence investigations of the properties as a whole ('due diligence condition') and the approval of the transaction by the company's shareholders ('shareholder approval condition')."
The front building, a historically significant structure that formerly housed Kirkcaldie's long-defunct competitor DIC, accounted for most of the $50 million valuation ascribed to the property.
Kirkcaldie plans to recapitalise its retail unit from the proceeds of the asset sales before returning any surplus to shareholders.
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
- Has Uber snookered itself? Air NZ executives cash in, National’s double-edged sword
- What's going on with NZ's private equity and venture capital scene?
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