Kathmandu launches $3M court case against Briscoes
Outdoor clothing retailer Kathmandu has launched legal action against its former suitor to recover about $3 million in costs related to the Briscoe Group's failed takeover bid.
Kathmandu has lodged a claim in the New Zealand High Court to recover expenses of NZ$2.7 million and AU$446,400 to which it says it is entitled to under the New Zealand Takeover Code.
The company successfully fended off a takeover bid from New Zealand retailer Rod Duke's Briscoe Group in 2015.
The unsolicited takeover bid, described as aggressive, was launched last June, when Kathmandu's share price was taking a beating following sluggish sales and profit downgrades.
Briscoe, at the time, increased its stake in the company to its current holding of nearly 20 percent.
Kathmandu's shareholders rejected the cash-and-scrip offer, worth about NZ$350 million, in September after the company advised against it, saying the offer undervalued the company.
Kathmandu is now targeting international expansion after returning to profit in the six months to January 31.
A comment from Briscoe has been sought.
Kathmandu shares were down 0.75 cents, or 0.54 percent, at $1.3875 at midday NZ time.