Sports and leisure retailer Kathmandu is looking to claw back $2.5million in expenses incurred over the hostile takeover attempt by Briscoes last year.
In a brief note to the market yesterday, Kathmandu's chief financial officer, Reuben Casey, said Kathmandu incurred significant costs from the takeover bid, under rule 49 of the New Zealand Takeover Code, claiming it was entitled to recover expenses of $2.67million and $A446,397 ($NZ470,000), a total of $3.14million.
Briscoe Group made a hostile 100% takeover bid of $362million for Kathmandu last year, but by September that had fallen flat, largely because of shareholder disinterest in the implied $1.80 per share, but which carried only a 20c cash component.
Kathmandu's share price had previously been under pressure after the company booked losses and made downgrades, following milder-than-expected winters, high stock inventories and general lack of uptake during some crucial sale periods.
Following an initial request to Briscoes for payment last November 2015, Briscoes paid $637,711 in May, but without prejudice to its position on what sum Kathmandu was entitled to recover.
Mr Casey said yesterday Kathmandu considered the full amount claimed, $3.14million, was recoverable and has issued legal proceedings for the balance of $2.5million owed.
