Listing on the cards for Dick Smith
Dick Smith was offloaded by Woolworths last September to Anchorage in a $20 million fire sale. The retailer is expected to be flipped into an initial public offering as early as next year.
The Dick Smith chain recorded sales of $1.57 billion and earnings before interest, tax and one-off charges of $24.6 million, in financial year 2012.
Macquarie and Goldman Sachs declined to comment.
Speaking on the company's business strategy for the first time since its takeover last year, chief executive Nick Abboud said the brand was in a "powerful position" given it had no core debt.
"Anchorage are very confident with the strategy that management have put into the business. It allows us to look at many options - and one of those would be an IPO," he said. "The timing of that - obviously we need to perform for a period of time. Once we get some runs on the board then we will allow a wider market to get involved."
Frequently Asked Questions about this Article…
Private equity firm Anchorage Capital Partners is exploring a potential sharemarket listing for Dick Smith Electronics and has appointed Goldman Sachs and Macquarie Group to advise on a listing and other strategic options. Anchorage says an IPO is one of several options and it could happen as early as next year, subject to the business performing over time.
Dick Smith was offloaded by Woolworths to Anchorage Capital Partners last September in what the article describes as a $20 million fire sale. Anchorage is now running the business and considering strategic options including a listing.
Anchorage has appointed Goldman Sachs and Macquarie Group to advise it on a potential listing and other strategic options. Both Macquarie and Goldman Sachs declined to comment to the media, according to the article.
In financial year 2012 Dick Smith recorded sales of $1.57 billion and earnings before interest, tax and one-off charges of $24.6 million, as reported in the article.
Chief executive Nick Abboud said the Dick Smith brand is in a 'powerful position' because the business has no core debt. Anchorage has expressed confidence in management's strategy and said an IPO would be considered once the business has 'some runs on the board' and performance over time.
No. Anchorage is looking at a range of strategic options and has appointed advisers to explore those possibilities. An IPO is explicitly mentioned as one option among others.
The article says a listing could occur 'as early as next year,' but Anchorage emphasised timing will depend on business performance and achieving results before inviting the wider market to participate.
Investors should watch for official announcements from Anchorage, updates from management on business performance, any formal engagement or statements from Goldman Sachs or Macquarie about the process, and clear timing signals that the company has delivered the 'runs on the board' Anchorage wants before pursuing an IPO.
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