McCashin’s Brewery has acquired an option to purchase a 20 percent stake in food investment business Veritas Investments.
Veritas has agreed to sell 8.6 million shares in the business to 660 Main Stoke Road, which trades as McCashin’s – almost 20 percent of the business. The purchase price will be 20 cents per share, or almost $1.7 million. Veritas shares had been trading at 9 cents per share before the news was announced through NZX. Shares rose to 10 cents after the announcement, taking the total gain in the last year to 78 percent.
Veritas has struggled in recent years, following the unsuccessful acquisitions of the Mad Butcher franchise (for which it paid $40 million in 2013 before selling it for just $8 million in 2017) and the Nosh grocery business. It has now switched its focus to hospitality outlets, taking over The Better Bar Company in 2014 and is currently looking at buying Citizen Park in Kingsland for $2.7 million.
Former Veritas chief executive Michael Morton will retain a 15.7 percent in the company if McCashin’s exercises its option.
