Wellington-based investment company Ranagatira will take control of Rainbow's End operator New Zealand Experience in a deal with the target company's major shareholder as part of a full takeover.
The trustees of the Estate of George Ryerson Gardiner, which owns 74.86% of NZE, have agreed to a lock-in agreement with Rangatira under which the investment company will make a full takeover at 36 cents a share, NZE says in a statement.
The trustee's shares are held by Garlow Management.
The deal values NZE at $13.3 million and represents a 12% discount to NZE's last trading price of 41 cents.
NZE's committee of independent directors has hired Simmons Corporate Finance to assess the merits of the deal and retained Harmos Horton Lusk as legal adviser, it says. The company urges shareholders to take no action pending the target company statement.
It expects Rangatira to give formal takeover notice in the next five days.
Rangatira has two classes of shares that trade on the Unlisted platform, with 67% held as class A shares and 33% held in class B shares, to differentiate between charitable and non-charitable shareholders. Both last traded at $6.
In September, Rangatira said it had $20 million on hand for new investments after exiting Dunlop Living, Tecpak Industries and Te Kairanga Wines last year. That month it announced a $3.5 million investment in medical and insurance service provider Konnect Net.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- 'Under pressure' Weldon froze funding for Grain Exchange that led to losses, court hears
- Key's lawyer, Whitney, no longer a practising lawyer
- GeoOp shareholders approve $9m 'Hail Mary pass'
- Media barred from GeoOp meeting
- Cyber-attacks a standard part of doing business with China, security experts say
Most listened to
- David Seymour says the government is hypocritical to believe EVs are next big thing but also need help
- Tech investment commentator Ben Kepes slams GeoOp
- In his Editor’s Insight, Nevil Gibson reports on a conference to reduce air traffic congestion in Asia-Pacific
- Hamish McNicol talks about arm’s length dealings with offshore FSPR ratbags
- Still hope for TPP insists trade expert Stephen Jacobi