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
Most listened to
- Scales Corp CEO Andy Borland assesses likely immigration cuts
- Forsyth Barr’s Kevin Stirrat talks through the market reaction to the new government
- Iron Duke director Phil O'Reilly on how concerned businesses should be about the new Labour-led government
- New Sky TV NZ director Mike Darcey on the skills he brings from Sky UK, and what it's like working for Rupert Murdoch
- Nevil Gibson's back on Wall Street's darkest day and what has happened since
- NBR Radio: The best interviews, with Grant Walker — updated daily