Dick Smith sale sees bid leader

Woolworths, Australia's leading supermarket chain, could sell its struggling electronic chain Dick Smith to a consortium led by former chief financial officer William Paul Renton Wavish, the Australian Financial Review reported.

Wavish, CFO of the supermarket chain between 1999 and 2003 and currently chairman of lingerie group Bendon, is talking to private equity firms Ironbridge Capital and Anchorage to raise funds for the joint bid and is the only remaining bidder, the paper said, without citing sources.

Last week, Woolworths told an analyst briefing that it hoped to name a buyer for Dick Smith in three to four weeks. It had announced its plan to sell Dick Smith, which analysts have valued it at around A$200 million ($207 million), in January.

A Woolworths spokeswoman in Sydney could not be immediately reached for comment.

Wavish and his group are likely to pick up only the best-performing outlets, cut costs and turn around Dick Smith under new management, the paper said.

In January, Woolworths said it would take a A$300 million charge to cover the costs of closing up to 100 weaker Dick Smith stores, or nearly a quarter of the chain, over the next two years and writing down goodwill.

Boutique firm Greenhill Caliburn is advising Woolworths on the sale.

Source: http://in.reuters.com/article/2012/07/18/us-woolworths-dicksmith-sale-idINBRE86H1MG20120718