Butchery chain the Mad Butcher is to become listed on the New Zealand stock exchange via a backdoor listing.
NZX-listed shell company Veritas has signed an agreement to buy the Mad Butcher, and says it will go to the market for a public capital raising early next year.
"Veritas has been looking for acquisition opportunities throughout 2012. Having looked at a number of businesses, the Mad Butcher is a stand out, and we are delighted to bring this company to the market," chairman Mark Darrow said.
Under the terms of the deal, Veritas will acquire the Mad Butcher franchisor business for $40m from owner Michael Morton.
The transaction will be paid for by $20m in cash and $20m in Veritas shares, the company said.
Morton will remain as the CEO of the Mad Butcher business, will become a director of Veritas and will be its largest shareholder following completion of the transaction.
Funding arrangements are in place, Veritas said.
- © Fairfax NZ News
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