Harvey Norman to be Briscoe shareholder

By Phil Boeyen, ShareChat Business News Editor

Monday 12th November 2001

Australian company Harvey Norman will have an even stronger presence on the New Zealand retail scene when Briscoe lists on the NZSE towards the end of the year.

The New Zealand retail company, which put off a planned 20% float in the wake of the September 11 events, has announced the offer if back on. Documents are due to be registered by the end of next week with the issue closing on December 12.

40 million shares will be issued at $1.00 per shares, representing 20% of the 210 million shares on issue after the float.

35 million of these shares will be offered on a firm allocation basis through lead broker J B Were and other brokers while a further 5 million shares will be given to the group's directors, employees and business associates. There will be no public pool.

Another 2.5% of the company representing 5.25 million shares will be issued at $1.00 to Harvey Norman chairman, Gerry Harvey. His namesake company will also take a 2.5% stake and Mr Harvey will join the board as a non-executive director.

Harvey Norman is already a significant retailer in New Zealand through its large format stores which sell furniture, appliance and computer stores.

Following the issue the current owner of the Briscoe Group, the R.A. Duke Trust, will own 75% of the listed business.

The Briscoe Group comprises two major retailing businesses, the 28-store Briscoes Homeware chain and the 11-store Rebel Sport business.

The group says that of the $40 million due to be raised from going public, $13 million will be spent modernising the homeware stores and expanding the Rebel Sport chain to 21 stores. A further $9 million will be used to repay a shareholder loan and the rest will "provide the group with increased flexibility to pursue other opportunities."

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