Veritas buys Better Bar Co
NZF progresses reverse takeover talks
New log processor for Marsden Pt
Dorchester completes Turners takeover
Kiwi Income notes convert in December
Veritas buys Better Bar Co
Veritas Investments Ltd has entered into a conditional agreement to buy the business & assets of The Better Bar group of companies as a going concern for $31.2 million. Veritas chairman Mark Darrow said on Friday this acquisition was expected to increase Veritas’ annual revenue to over $90 million/year.
It’s Veritas’ fourth acquisition in the 18 months since it took over the listed shell of Salvus Strategic Investments Ltd, starting with purchase of The Mad Butcher franchisor business in May 2013, a 50% stake in Kiwi Pacific Foods in December and the Nosh Food Market business in September.
The Better Bar group has 11 sites in Auckland & Hamilton, including The Cav, O’Hagan’s, Doolan Brothers & Danny Doolans. The acquisition is conditional on Veritas shareholder approval at its annual meeting this month, and on landlord & key supplier consents, relevant permits & licences being obtained and key management staff transferring their employment to Veritas.
Veritas will pay $23.4 million (75%) of the purchase price in cash, funded by an ANZ Bank facility of up to $25 million, and the remaining 25% through the issue of new Veritas shares.
Subject to shareholders approving the transaction, Better Bar group chairman Richard Sigley will join the Veritas board and Geoff Tuttle will remain chief executive of the bar business.
NZF progresses reverse takeover talks
Struggling NZX-listed financier NZF Group Ltd said on Friday it had executed a non-binding terms sheet with the stakeholders of a potential acquisition target. In conjunction, NZF is considering a restructure of its notes & ordinary share capital.
The terms sheet provides for 2-way due diligence to be completed, followed by a legally binding acquisition contract by Thursday 20 November.
NZF chairman Sean Joyce said the company’s largest noteholder, Nessock Custodians Ltd, an MSL Capital Markets Ltd (McDouall Stuart) company, supported the possible transaction. Nessock had called in May for further investigation of a possible reverse takeover after the directors set a course for liquidating NZF.
New log processor for Marsden Pt
Marsden Maritime Holdings Ltd (ex-Northland Port Corp (NZ) Ltd) has entered into a long-term agreement to lease 2ha bordering the port terminal & existing log debarking facility to an unnamed tenant.
Marsden Maritime chief executive Graham Wallace said on Friday the lessee intended to establish a log processing plant on the site, operating from mid-2015, but a confidentiality agreement prevented the company from elaborating further.
Dorchester completes Turners takeover
Dorchester Pacific Ltd has achieved 100% ownership of Turners Group NZ Ltd after mopping up the outstanding 6.2% of shares through compulsory acquisition in the last week.
Kiwi Income notes convert in December
Kiwi Income Property Trust’s $120 million of 2009 8.95% mandatory convertible notes will convert into ordinary units on 20 December.
The conversion price will be determined & announced on 8 December and notes trading will cease on 15 December. The conversion price will be the lower of a 2% discount to the average of the daily volume weighted average price of the units for the preceding 20 business days (10 November-5 December) or $1.20/unit. The units closed at $1.215 on Friday.
A complication in pricing is that the record date for Kiwi Income’s interim distribution on its units is 2 December, 6 days before the notes pricing date. The value of the cash distribution will be deducted through the price-setting period.
The trust internalised management last December and its management company indicated its intention to move to full corporatisation once the notes matured.
Attribution: Company releases.
