This is interesting in a tangential way:
"Electronics companies and bargain hunters interested in buying Dick Smith will receive formal sale documents on Wednesday, as receiver Ferrier Hodgson goes about drumming up interest in the business.
Sources told Street Talk that Ferrier Hodgson would release an information memorandum to serious tyre-kickers Wednesday, and seek formal expressions of interest by January 27.
According to advertisements last week, the receiver is willing to consider offers for all or parts of the business.
The tightly compressed schedule has bidders in no two minds about Ferrier Hodgson's intentions and willingness to pursue a quick deal in order to keep the business up and running.
As is often the case when businesses offered by receivers, a bid for the entire Dick Smith business seems unlikely with prospective acquirers more likely to focus on certain divisions such as the profitable New Zealand unit and the Move concept stores which concentrate on high-end (and high margin) electronics.
Along with the usual private equity, distressed debt and retail types circling the company, Street Talk can reveal that
Dicker Data co-founder and major shareholder Fiona Brown shapes as an interested party.
Sources said
Brown was working with Newport Capital's Lou Richard - a veteran M&A adviser who has helped Dicker Data in the past - in assessing the opportunity. [Richard also penned the "highly readable" M&A book, A Practical Guide to Mergers and Acquisitions.]
Brown has been involved with Dicker Data, a wholesale distributor of computer hardware and related products, since 1978 and on the company's board for more than 30 years. She also owns 56.3 million shares worth about $80 million.
Dick Smith collapsed with debt worth about $390 million earlier this month.
Secured creditors, including major banks HSBC and National Australia Bank, have staked claim to approximately $140 million while unsecured creditors
including Macquarie Group are owed about $250 million.
Equity holders - whose shares were valued at $84 million at the time of the collapse - will only be repaid if Ferrier Hodgson's team including James Stewart, Jim Sarantinos and Ryan Eagle can get a buyer to stump up north of $390 million, which seems unlikely.
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So what would it mean if Fiona Brown were to bid for and get parts of DSH? (a) I assume this is nothing to do with DDR? (b) but would DDR benefit from any synergies? (c) would FB look to sell down some of her 56.3 m shares in DDR to buy bits of DSH?
I can't begin to analyse this possibility.
(20min delay)