Kathmandu Holdings Limited (ASX:KMD, NZE:KMD) has asked shareholders to take no action in relation to a takeover bid from New Zealand listed Briscoe Group Limited (NZE:BGR).
The retailer’s board expects to meet shortly to consider the takeover notice and draft offer in detail after which it will provide an update.
Briscoe boosted its stake in Kathmandu to 19.9 per cent on Tuesday after which it lodged a takeover notice on Wednesday.
Under the deal Kathmandu shareholders would receive five Briscoe shares for every nine Kathmandu shares and a cash payment, together equating to a valuation of about $NZ1.80 or $AUD1.57 per share.
Kathmandu Holdings reported a net loss of $1.7 million in the first half of the 2015 financial year.
