Bethunes finds backdoor listing candidate in NZ Retail Property Group

Bethunes Investments (BIL}, the shell that used to be auction house Mowbray Collectibles, has signed a deal with Westgate-subsidiary NZ Retail Property Group for a backdoor listing of its property portfolio and development pipeline.

The Wellington-based company has been looking for suitable investment options after quitting the auction business last year and has signed a non-binding conditional term sheet with Westgate Power Centre and NZ Retail Property Group, which it says will be the country's biggest-ever reverse listing.

The deal would see Bethunes' existing assets transferred into a subsidiary, whose shares would be distributed to the group's existing shareholders. That would be followed by the property group's reverse listing with Bethunes issuing shares to Westgate, which would hold 99% of the stock.

The transaction puts a $400 million value NZ Retail Property Group, which owns three town retail sites in Auckland and a Tauranga shopping centre. It also has plans to develop existing retail centres into planned town environments.

"NZRPG is seeking capital to realise these plans and a reverse listing is intended to support securing new capital," the company says. "NZRPG is presenting to investors the opportunity to take part in one of the most significant retail property development pipelines in New Zealand."

Bethunes says the deal is subject to both parties conducting due diligence and signing a binding contract, getting NZX waivers and shareholders backing for the transaction. It intends to hold a special meeting by the end of June.

"The business plan and assets of BIL will continue in the new BIL which BIL shareholders will directly own" meaning the transactions "can only add value for BIL shareholders as they will also own an interest in NZRPG," Bethunes says.

"The BIL board is investigating either relisting a new BIL following the transactions or placing the new BIL on an alternative share trading platform to retain some liquidity."

Bethunes' shares last traded at 0.9c, down from 1.7c a year earlier.

(BusinessDesk)