Ann: Entry into UK Market, Acquisition and Equity Raising, page-12

Contrast this acquisition with the recent one at Treasury Wines.

This has the hallmarks of much lower risk M&A, despite the track record of Aus companies failing to launch overseas.

Basically, NCK are buying a struggling business for the value of its debt, that is operating sub optimally ( gross margin comment), and which is essentially going to act as a skeleton from which an accelerated launch of the brand can occur.

The vast mahority of the raising is going to be applied to the rebranding and improvement of the acqusition, rather than paying for the business itself, thats fairly rare on the ASX.

That sounds like a much lower risk proposition than for instance what Bunnings did, which was to buy an existing relatively successful hardware chain for a big amount of money. Then subsequently failing to cement the Bunnings brand.