$1.30 for cut of The Mad Butcher

LAURA WALTERS
Last updated 09:45 26/03/2013
mroton
Mad Butcher owner Michael Morton.

Relevant offers

Industries

Air NZ flight attendant say hacking led to photo, video leak Air New Zealand's record profit great for travellers, but not necessarily fares One of Wairarapa's 'best ever' buildings put on the market Hawkins project manager wins top NZIOB and Gib building awards Yealand's Crossroads winery and vineyards put on the market Mentoring magic for southern tour operators opens doors in China No laws broken by KiwiSaver schemes, expert says Tru-Test's subsidiary pauses $4.1m claim after appeal brought forward Audience gain fails to compensate TVNZ for weaker advertising market Auckland real estate agent Steve Koerber sells same house five times

Investors will be able to buy a piece of The Mad Butcher for $1.30 per share in an initial public offering next month.

It was announced today that $25 million worth of shares in the franchisor will be sold in April and May.

NZX-listed shell company Veritas purchased The Mad Butcher for $40m last year, with plans to list the company on the sharemarket in order to part-fund the acquisition.

Veritas acquired the Mad Butcher franchisor business from owner Michael Morton for $20m in cash and $20m in Veritas shares. Morton bought the company from his father-in-law Peter Leitch, the original Mad Butcher, in 2007.  

Veritas has started a bookbuild process where selected institutional investors and NZX firms are able to lodge bids indicating the number of shares they wish to apply for.

Full details regarding the $25m offer will be released following completion of the bookbuild and registration of the prospectus later this week.

The price of $1.30 per share represents a 14.8 per cent premium to the volume weighted average price for the three-month period prior to the announcement of the $40m purchase at the end of last year.

A priority pool of shares will be available to Veritas shareholders and existing Mad Butcher franchisees.

Veritas will seek the approval of its shareholders for the $25m offer at a special meeting in late April.

Ad Feedback

- BusinessDay.co.nz

Comments

Special offers

Featured Promotions

Sponsored Content