KRK
23/02/2016 08:30
GENERAL
PRICE SENSITIVE
REL: 0830 HRS Kirkcaldie & Stains Limited
GENERAL: KRK: KiRK - directors' estimate range of residual NTA
Market Announcement
23 February 2016
Kirkcaldie & Stains - directors' estimate range of residual net assets values
The market and shareholders will be aware that the Company's retail
operations ceased on 16 January 2016; the David Jones transaction was
completed on 1 February 2016; and the Court approved distribution of $19.354
million to shareholders will occur on Monday 29 February 2016.
In light of these events the Board has been concentrating on completion of
the financial statements for the six months ending 29 February 2016 so as to
reflect the last months of trading and resolution of all the residual issues
of the retail operations. At the same time the Board has been continuing its
efforts to dispose of the Company's remaining leases at its former Petone,
Thorndon Quay and Brandon Street premises. The Board is actively considering
specific opportunities for each of these premises and is hopeful that
satisfactory arrangements can be concluded in the coming weeks.
In doing so, the Board is conscious of the desirability of providing some
early guidance to shareholders on the range of residual cash the Company will
have on hand for final distribution to shareholders in the event that the
Board recommends to shareholders that the company be put into a formal
liquidation process, or another opportunity arises to realise value for
shareholders.
While there are a number of uncertainties, the Board's present assessment is
that once the distribution of $19.354 million has been completed next week,
the Company will have net assets in the range of $6.5 million to $7.5
million. At this time the Company will have approximately 2,042,830 shares
on issue (all the shares held by The Kirkcaldie & Stains Trustee Company
Limited having been cancelled via its participation in the distribution and
the terms of the High Court orders and depending on final rounding).
After the distribution of $2.36 per share and cancellation of four out of
every five shares currently on issue, this residual value range is equivalent
to $3.18 to $3.67 per remaining share (or a residual value of $0.63 to $0.73
calculated on the basis of the current 10,250,000 shares on issue).
The Board is optimistic that the final figure will trend towards the higher
end of this range but this is principally dependent on:
o satisfactory resolution of remaining lease issues
o no warranty claim under our agreement with David Jones or any other
unexpected matter arising.
Shareholders and the market will be kept informed as and when these matters
clarify themselves.
Falcon Clouston
Chairman
ENDS
For further information:
Falcon Clouston
PO Box 1494
Wellington 6140
End CA:00278101 For:KRK Type:GENERAL Time:2016-02-23 08:30:01
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