The Hill family have keep market guessing over increasing
their stake to 50.1%. Photo from ODT files.
The Hill family caught financial markets by surprise by
announcing yesterday the family wanted to consolidate and
increase its stake in Michael Hill International.
Company secretary Wayne Butler said that historically, the
Hill family shareholding had been held in a number of
different family trusts.
"The Hill family advises that the reasons for doing so are no
longer relevant and it considers that a single entity is now
more appropriate."
The family also wanted to increase its shareholding in the
company to about 50.1% from the 48% it currently held in MHI,
he said.
The matter would be put before the company's annual meeting
on November 5.
If the move was approved by shareholders, the Hill family
would increase its percentage voting control in the company
by buying shares on the market in a manner broadly similar to
a company share buy back in the 12 months following approval,
Mr Butler said.
Forsyth Barr broker Suzanne Kinnaird said it was difficult to
know what the thinking was behind this move.
"Maybe they just view the company as a good investment. They
effectively have a controlling stake now, although
technically this move gives them absolute control."
By consolidating into one holding, and having 50.1% of the
company, it would make it simpler for the family in the
future should they decide to hand control to another party -
although that did not seem likely in the near-term, Ms
Kinnaird said.
MHI shares rose 4c to 69c yesterday.
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