Retail store operator, Reject Shop Limited (ASX: TRS) has through a latest release on ASX stated that they are releasing a copy of the first supplementary target’s statement of TRS in response to the Allensford offer. This statement is being issued in pursuance to the corporations’ act.
The company also released the trading update for the 1H 2019 reconfirming the recommendation to reject the Allensford offer. As per the preliminary unaudited results, the company expects the NPAT for the six months to 31 December 2018 to be circa $10.5 million.
The company’s Chairman, Mr. Bill Stevens stated that the result is in consonance with the guidance which was provided in the trading update earlier issued by the company as on the 17 October 2018. The company had earlier re-affirmed the same in the Company’s target’s statement dated 3 December 2018.
Further details of the first half of FY2019 performance will be provided by the company as on 20 February 2019. This financial information included in this release is still subject to review by the company’s auditor.
Mr. Stevens has further commented that today’s announcement is issued in relevance with the takeover bid received from Allensford, which is slated to close on the 22 January 2019. He said that Allenford’s replacement bidder’s statement dated 3 December 2018, together with its second supplementary bidder’s statement dated 20 December 2018, contained many speculative comments in respect of company’s performance for the period of the first half of FY2019. These comments have been exhibited as unsubstantiated. In the scenario of highs and lows over the past few years & the existing challenging retail environment, the company’s Board continues to believe in the long-term growth prospects of company’s business, which has remained profitable in spite of the fluctuating retail environment. Accordingly, the Board has reaffirmed its previous recommendation that shareholders REJECT Allensford’s offer by DOING NOTHING in relation to that offer.
Consistent with usual practice, the company intends to provide further commentary on the full year outlook on 20 February 2019 and notes that it typically generates a higher proportion of full-year sales in the first half and has often traded at a loss in the second half.
The company had earlier disclosed to the exchange that the Bell Potter Securities Limited which is acting as Broker had announced that the offer period had been extended till the closure of trading on the 22 January 2019 unless Allensford Pty Ltd is sought any further extension.
This step to extend the offer was taken by the brokerage firm in consonance with the ASIC market integrity rules 2017. The Allensford has made the takeover bid followed by a bidder’s statement which was issued earlier on the 21 November 2018.
In the meantime, the stock price of the company has fallen by 51.43 percent in the past six months as on 14 January 2019. Company’s shares last traded at $2.76, up by 1.471% & it has a market capitalization of circa $78.63 million as on 15 January 2019.
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