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