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Michael Hill outlines succession plan

NZ NewswireNZ Newswire 22/06/2016 Jonathan Underhill

Michael Hill, the founder of the jewellery chain that bears his name, has outlined what is described as a "succession plan" for his family's controlling stake in the company.

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, Emma and Mark, would get five per cent each.

The changes are contingent on the company's shareholders approving a scheme of arrangement at a special meeting on Thursday that would see a new Australian parent acquire all of the existing shares on a one-for-one basis with a primary listing on the ASX.

Australia is Michael Hill International's biggest market and its financial reports are in Australian dollars.

Subject to shareholder approval, the shares will go into a trading halt on Friday, 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.

Emma Hill, who is company chairwoman, said in April that the move to Australia would provide direct access to a wider group of investors.

"On a day-to-day basis, we will have all of our governance, executive and business operations operating in one jurisdiction and this will considerably simplify our structure."

Michael Hill shares last traded at $1.15 and have gained 16 per cent this year.

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