Hellaby initiates strategic review of retail footwear businesses

01 May '07

2 min read

Hellaby Holdings confirmed that, in response to unsolicited approaches from a number of parties and as part of an ongoing strategy of active investment and portfolio management, the company has initiated a strategic review of its retail footwear businesses, R Hannah & Co Limited (trading as “Hannahs”) and Discount Shoe Warehouse Limited (trading as “Number 1 Shoes”).

Hannahs and Number 1 Shoes are the leading footwear retailers in New Zealand with strong market positions and together hold approximately 40% of the specialty footwear retail market in this country.

Assisted by Westpac Corporate Finance, Hellaby Holdings is considering a number of alternatives to create additional value from these businesses, including potential transactions involving third parties as well as strategic actions the companies may take alone or together.

Any action taken will be centred on shareholder value creation and on the continued growth and development of Hannahs and Number 1 Shoes.

David Houldsworth, Managing Director of Hellaby Holdings commented “We have built up a very strong position in the New Zealand shoe retail market and Hellaby Holdings is committed to growing these businesses to maximise shareholder value. However, given the interest expressed by various parties we believe that it is in shareholders interests for us to test the market to see if other parties are prepared to pay a price for these businesses which reflects their strong market positions and growth prospects and is demonstrably higher than their value to Hellaby.”

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