Wellington, Aug 25 NZPA - The Hill family is aiming to lift its shareholding in jeweller Michael Hill International (MHI) to about 50.1 percent from around 48 percent now.

It aims to seek shareholder approval for the move at the company's annual meeting on November 5.

To be able to deal with the matter at the meeting, the family will need exemptions from the Takeovers Code relating to information contained in the notice of meeting.

MHI company secretary Wayne Butler said it was anticipated that if the move was approved by shareholders the Hill family would look to lift its percentage voting control of the company by buying shares on market in a manner broadly similar to a company share buyback in the 12 months following approval.

The family also wanted to consolidate its shareholding in the company into a single entity, Mr Butler said.

"Historically, the Hill family shareholding has been held in a number of different family trusts. However, the Hill family advises that the reasons for doing so are no longer relevant and it considers that a single entity is now more appropriate."

If it became apparent the necessary Takeovers Code exemptions could not be obtained in time for the annual meeting, a further announcement would be made, Mr Butler said.

MHI shares were up 2c in late morning trade to 67c, having ranged between 60c and 77c in the past year.

For the year to June, MHI reported a 60 percent fall in after tax annual profit to $26.5m, on 7.6 percent higher operating revenue of $443.3m. Earnings before interest and tax were up 38.4 percent to $36.2m.

Chairman Michael Hill said achieving sales targets proved difficult during the year with margins under pressure from heavy promotional activity within the industry and retail sector generally.

MHI shares were up 2c in late morning trade to 67c, having ranged between 60c and 77c in the past year.