$1.30 for cut of The Mad Butcher

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

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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.

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- BusinessDay.co.nz


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