VIL 0.00% 6.4¢ veritas investments limited

Ann: ASSET: VIL: Final purchase price confirmed for The Better Bar group

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    • Release Date: 07/05/15 11:53
    • Summary: ASSET: VIL: Final purchase price confirmed for The Better Bar group
    • Price Sensitive: No
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    					VIL
    07/05/2015 11:53
    ASSET
    PRICE SENSITIVE
    REL: 1153 HRS Veritas Investments Limited
    
    ASSET: VIL: Final purchase price confirmed for The Better Bar group
    
    NZX and Media Release
    7 May 2015
    
    Veritas confirms final purchase price for The Better Bar group acquisition
    
    Veritas Investments Limited (NZX:VIL) completed the acquisition of the
    business and assets of the Better Bar group of companies (BBC) on 28th
    November 2014 as part of its investment strategy in the New Zealand Food and
    Beverage sector.  As noted at the time, this acquisition incorporated 11
    sites in Auckland and Hamilton and iconic brands such as Danny Doolans,
    Doolan Brothers, Cock & Bull, and The Cav.
    
    VIL and the BBC vendors have now finalised the purchase price adjustment for
    the BBC business, which will (subject to shareholder approval) see a $2.15m
    reduction to the total purchase price, from $31.2m to $29.05m.
    
    The purchase price adjustment will be effected by a combination of cash and
    share buyback (the latter being subject to shareholder approval).
    
    Approx. $1.03m in cash will be paid to Veritas from the retention amount of
    the purchase price (currently held in an interest bearing trust account), in
    accordance with the previously described transaction arrangements.
    
    1,000,000 of the 6,964,286 VIL shares, which were issued to the BBC vendors
    at $1.12 per share at completion of the BBC acquisition, are to be
    repurchased by VIL for an aggregate nominal consideration of $1, subject to
    shareholder approval. This represents a value of approx. $1.12m to the
    purchase price adjustment.  As previously disclosed, the VIL shares issued to
    the BBC vendors are subject to certain sell-down restrictions. The share
    buyback will be undertaken in respect of the last tranche of the shares that
    are subject to sell-down restrictions, which will be released from escrow
    after the announcement of Veritas' preliminary results in respect of FY2017.
    The precise terms and conditions of this share buyback proposal will be
    presented prior to the next shareholder meeting in accordance with the NZX
    Main Board Listing Rules.
    
    -ends-
    
    For further information, contact:
    Mark Darrow, Chairman, Veritas Investments, +64 21 88 88 58
    End CA:00264044 For:VIL    Type:ASSET      Time:2015-05-07 11:53:54
    				
 
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