You are using an older browser version. Please use a supported version for the best MSN experience.

Michael Hill outlines succession plan

NZN 22/06/2016 By Jonathan Underhill

Michael Hill International shareholders have voted overwhelmingly in favour of a restructuring plan that would shift the jewellery chain into a new company incorporated in Australia and listed on the ASX.

More than 99 per cent of votes cast were in favour of the resolutions to move to Australia by way of a scheme of arrangement involving a new Australian parent company. Support for the plan amounted to about 80.2 per cent of shares on issue, the Brisbane-based company said.

Michael Hill will now seek final orders from the High Court approving the scheme, along with listing approvals from the ASX and NZX, it said.

The company stands to reap up to A$22 million of tax benefits from the restructure, independent adviser KordaMentha said this month.

Emma Hill, who is company chair, said in April that the move to Australia over time "will provide the company with direct access to a wider group of investors than we currently enjoy and we believe this will be to the benefit of all of our shareholders."

The successful vote means the family of founder Michael Hill will proceed with what it described today as a succession plan, which would see 10 per cent of the company transfer from the family trust to individual trusts for daughter and chair Emma and son Mark Hill.

The restructuring would see the family's holding through the Boxer Hill Trust reduce to 42.89 per cent from 52.89 per cent, while trusts established for the two children of Michael and Christine Hill would get 5 per cent each.

The existing shares are to go into a trading halt tomorrow, with the conversion of shares to those of the new Australian parent to take place at 6pm Brisbane time on June 29.

The existing shares would delist from the NZX at the market close on July 6 and the new shares, which will be listed on the ASX and the NZX, would begin trading on July 7.

Michael Hill shares rose 1.7 per cent to $1.17 and have gained 16 per cent this year. The stock is rated a 'buy' based on the consensus of three analysts polled by Reuters.

image beaconimage beaconimage beacon