Michael Hill’s ‘succession plan’ approved by shareholders

michael hill imageMichael Hill, founder of the jewellery retail chain, has outlined a ‘succession plan’ ahead of the move to list on the ASX.

The company founder, Michael Hill, has instigated a restructure of his family’s controlling stake in the company, stating 10 per cent would be transferred to trusts for daughter Emma and son Mark.

The restructuring involves reducing the economic interest of the Boxer Hill Trust in the shares of Michael Hill International Limited (held through  Michael Hill International Limited Australia and Durante) from 52.89 per cent to 42.89 per cent while trusts established for Mark and Emma would get five per cent each.

The company’s shareholders have approved the scheme of arrangement at a special meeting today and will now proceed to seek final orders from the High Court’s approval, as well as approvals from ASX and NZX to the necessary listings. If all approvals are granted, the company expects the scheme to be implemented on June 29, with the new ASX listing in place from early July 2016.

Emma Hill, who is company chair, said in April that the move to Australia over time “will provide the company with direct access to a wider group of investors than we currently enjoy and we believe this will be to the benefit of all of our shareholders. On a day-to-day basis, we will have all of our governance, executive and business operations operating in one jurisdiction and this will considerably simplify our structure.”

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