Danks Announces No Merger With Mitre 10
Danks Holdings put to rest any speculation of a possible merger with Mitre 10 in a recent announcement to the Australian Stock Exchange.
In a press release to the ASX, Danks noted that “informal discussions” had taken place, but that they had “failed to result in a complete proposal being formulated”.
Citing “a high level review of Mitre 10’s… published figures” and the perceived value of its Mega brand, the statement when on to say that “the Board and management of Danks have concluded that it would be difficult to arrive at a proposal which would meet the desired shareholder value criteria. The potential opportunity therefore is no longer on the Danks Board agenda.”
The statement also went on to mention Danks’ future strategy. “Danks will aggressively pursue its own growth strategies including growing its core business by attracting new members to the HoME Timber and Hardware, Thrifty-Link Hardware and Plant Plus Garden Centres groups. Major store relays and upgrades have been completed in 45 stores in the 2007 financial year, including 9 ‘XL’ format store developments.”
Mitre 10’s response will appear in the Australian Hardware Journal’s next issue – so watch out for it in October’s ‘Industry News’.