NZX-listed investment company Veritas Investments [NZX:VIL] has clarified the terms of its acquisition of upmarket food store chain Nosh Food Market.
Veritas acquired Nosh for approximately $1.77 million, $1 million below net tangible asset value, the company said in a statement this morning.
Some $500,000 of the purchase price payable has been retained for 90 days subject to various warranties and balance sheet verification.
Under the terms of the deal, Veritas has agreed to meet all of Nosh’s trade creditor agreements, but will not assume any Nosh bank or debenture debt.
As previously announced, the acquisition and further capital requirements is being funded by a $5 million facility with ANZ Bank.
"We are delighted to have Nosh under the Veritas umbrella and excited about the huge potential of the business," chairman Mark Darrow said.
Veritas completed the deal after satisfying conditions, including Nosh shareholder approval, as well as supplier and landlord approval.
Nosh is Veritas’ third addition to its food and beverage portfolio in the last 16 months, following the acquisitions of the Mad Butcher in May 2013 and 50% of Kiwi Pacific Foods in December 2013.
Mad Butcher chief executive and Veritas director Michael Morton will manage Nosh while the company searches for a permanent executive.
Veritas shares closed yesterday at $1.10, and have fallen 21% over the past 52 weeks.
Jason Foxcroft is an AUT University journalism and finance student
Jason Foxcroft
Tue, 09 Sep 2014
Tue, 09 Sep 2014
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Veritas confirms Nosh purchase price
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