Family of Michael Hill renews push to take control of jewellery chain
Dec. 20 (BusinessDesk) – The family of Michael Hill International’s founder has renewed its attempt to take control of the jewellery chains, offering a 6% premium to take its holding to 50.2% from 47.6%.
Durante Holdings, an Australian incorporated company set up to acquire the shares of the Hill family’s trusts, plans to offer 90 cents a share for 5% of Michael Hill. The shares traded on Friday at 85 cents. The offer is to open no later than Jan. 19 and close in February. Acceptances will be scaled, according to the partial takeover notice.
The proposal is the second attempt in four months for the family of founder Michael Hill to lift its stake over 50%. It abandoned an earlier attempt in September after the Takeovers Panel indicated it wouldn’t grant an exemption to takeover rules.
Durante has two pre-bid agreements that may assist its latest attempt.
Accident Compensation Corp. has agreed to sell 3 million shares into the offer and the Guardian of New Zealand Superannuation agreed to sell 1 million shares.
Shares of Michael Hill rose 2.4% to 87 cents on the NZX today, valuing the company at $325 million.