Veritas Investments Ltd subsidiary The Better Bar Co Ltd has entered into a conditional agreement to buy the business & assets of Citizen Park from Kingsland Trading Co Ltd as a going concern, for $2.7 million plus stock (estimated to be $30,000).
Citizen Park is a gastro pub at 424 New North Rd, Kingsland, on the western fringe of Auckland’s central city. Veritas chair Tim Cook said on Friday it was an established, profitable business with a good reputation in the community.
“Following refinance of the Veritas group earlier this year, the board & the management have been investigating potential opportunities to grow the group. Citizen Park is in a highly desirable location and represents a complementary acquisition for The Better Bar Co on a number of levels, from which we could drive synergies through our existing hospitality outlets, procurement base & supplier relationships. This is an exciting opportunity for the Veritas group.”
Veritas will debt-fund the full purchase price from the acquisition & capital expenditure facility provided by Pacific Dawn Ltd, a subsidiary of Japanese financier Nomura Holdings Inc, which had consented to the proposed transaction.
Mr Cook said the acquisition remained conditional on Veritas shareholder approval by ordinary resolution, which would be sought at a special meeting in January. It’s also conditional on landlord & key supplier consents, relevant permits & licences being obtained to ensure the day-to-day operation of the business, and key staff transferring their employment to The Better Bar Co.
A deposit of $270,000 will be payable when the transaction becomes unconditional (expected to be in late January), with the balance payable at completion. Subject to satisfaction of all conditions, Veritas expects completion in early- to mid-February.
Attribution: Company release.