Kathmandu has urged its shareholders to reject an offer worth more than $300 million.
The hostile takeover was made in late June by New Zealand's Briscoe Group.
The directors have outlined a series of reasons for the rebuttal, including:
- The Offer is below the Independent Adviser’s valuation of Kathmandu.
- The Offer is inadequate and does not reflect the underlying value of Kathmandu.
- Briscoe can afford to offer a lot more for shares.
- The timing of the offer is highly opportunistic.
- The offer fails to reflect the strength of Kathmandu’s business and future plans for growth.
- Becoming a Briscoe shareholder would change the profile of investment.
- The implied value of the Offer is uncertain.
Briscoe is offering shareholders five Brisco shares for every nine Kathmandu shares, as well as NZ20 cents.
The move is a bid to purchase the remaining 80.1 per cent stake it doesn't own.
Kathmandu experienced challenging trading conditions during fiscal 2015.
Profits were impacted by aggressive clearance initiatives, a weaker foreign exchange rate and a shorter winter promotional period.