Nick Scali MD buys siblings stakes

nick scali1.1Nick Scali (NSL) MD, Anthony Scali, has increased his stake to 27.3 per cent at the furniture retailer, after buying the respective 16.7 per cent shares of siblings Nicky and Yvonne.

The move comes as part of a $70 million sell down that sees NSL sell 18.4 million shares representing 23 per cent of the company, to institutional investors. The sell down was completed at $3.80 a share with the furniture retailer asserting the move ‘significantly increases’ their free float market capitalisation.

“The transactions reflect the generational change which has occurred over the past several years where Anthony Scali has increasingly put his stamp on the business he has so successfully led for more than 25 years,” said Nick Scali chairman, John Ingram. “ We welcome onto our register a number of new institutional shareholders who will enhance the liquidity of NSL shares, representing benefit for all NSL shareholders.”

Last month saw the furniture retailer post a company record half-year result.

“I am delighted that the Scali family will remain the largest shareholder in NSL and that my economic interest in the company has increased, demonstrating my confidence in the long term prospects for the business as we continue to pursue our strategy,” said Anthony Scali.

“While the Scali family stake will reduce following completion of the sell down, I remain fully committed to NSL and believe that the new ownership structure results in a strong personal alignment of economic interests between myself and all other NSL shareholders.”

Nick Scali senior, founder of the company, has also announced he will retire from the company’s board at their next AGM.

Following the transactions, NSL reaffirmed its guidance with 2016 full year NPAT expected to be $22-24 million.

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