South African-based conglomerate Steinhoff International has reportedly entered the race to acquire Australian home and electrical retailer The Good Guys.
Market sources suggest that a deal between Steinhoff and The Good Guys would rival home goods store Harvey Norman, by linking its already established Australian firm Freedom Furniture with The Good Guys.
No official bid has been reported as The Good Guys has confirmed that it has appointed Credit Suisse, Goldman Sachs and UBS as Joint Lead Managers to support its planned initial public offer (IPO) and listing on the Australian Securities Exchange with the oversight of Helfen Corporate Advisory as independent financial adviser.
The potential IPO is worth around $800m, with The Good Guys also confirming that it would ‘consider any alternate ownership proposals that emerge’.
According to Australian sources, consumer electronics retailer JB Hi-Fi has expressed an interested alongside Steinhoff, who has recently lost out in takeovers for Argos owner Home Retail and French bedding group Cauval (See related).
The Good Guys, an iconic brand with 100 outlets across metropolitan and regional Australia, has reported annual sales of approximately $2bn.
A statement from The Good Guys said: “Transition to 100% ownership of the store network is proceeding well and remains on track for completion at the end of the current financial year.”