Wednesday, March 28, 2012

Kirkcaldie & Stains rejects offer for unprofitable retail business ...

Kirkcaldie & Stains has ended discussions with a potential buyer of its unprofitable retail business, saying the parties have ?substantially different? views on the unit?s value.

The Wellington-based company said it won?t hold any further discussions with J C Capital, which was arranging an offer to buy the retailer?s flagship department store. The offer emerged last year.

?At this stage the board has a substantially different view on the value of the retail business from that of J C Capital,? chairman Falcon Clouston said in a statement. ?The board is not proposing any further discussions at this stage.?

The retail unit has been unprofitable for the past two years, and made a loss of $465,000 in the 12 months ended Aug. 31. The group posted a loss of $56,000 in the year as the property unit offset those losses.

As well as its flagship store on Lambton Quay, Kirkcaldie?s owns the Harbour City Centre, a historic six-floor retail and office building next door, which is currently being earthquake strengthened.

The shares last traded at $2.75 apiece, valuing the company at $28.2 million.

(BusinessDesk)

BusinessDesk.co.nz

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Source: http://www.sharechat.co.nz/article/5a48cca6/kirkcaldie-stains-rejects-offer-for-unprofitable-retail-business.html

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