Briscoes Group has bought a 19.9 per cent share in outdoor clothing retailer Kathmandu and is expected to launch a takeover bid for the whole business.
After plummeting to a record low of $1.27 last month, Kathmandu shares rose to $1.78 this morning.
"I am excited by the potential that would arise from bringing together these two iconic retailers - we each have strong and recognisable brands that I see as complementary," Briscoes Group managing director Rod Duke told NZN.
Briscoes already owned a 4.99 per cent stake in Kathmandu before the recent share buy-up.
Briscoes also owns chain stores Rebel Sport and Living and Giving. Kathmandu has a 157 stores across Australasia.