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Brierley's Mercantile closer to takeover

NZ Newswire logoNZ Newswire 6/10/2016 Sophie Boot

Ron Brierley's Mercantile NZ has crossed the 90 per cent threshold in its takeover bid for Wellington Merchants, formerly known as Kirkcaldie & Stains, triggering provisions to mop-up the remaining shares.

As of Wednesday, 80.2 per cent of the shares in Wellington Merchants had been sold to Mercantile under the takeover offer which, taking its holdings to 91.1 per cent, a notice to the stock exchange shows. That means Mercantile can enforce compulsory acquisition of the remaining stock under the Takeovers Code.

In August, Mercantile offered $3.45 per share, an uplift from previous offers of $2.75 and $3 made in March and June respectively. Kirkcaldie changed its name to Wellington Merchants in July. A month later, Wellington Merchants' directors recommended shareholders accept the offer, which they described as attractive.

The former Kirkcaldie site on Wellington's Lambton Quay is now occupied by the first New Zealand branch of Australian retailer David Jones.

The shares, still listed on the NZX, last traded at $3.40, and have gained 118 per cent this year.

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