A consortium backed by a Chinese retailer is believed to have been planning a takeover of Metcash last year, when the target’s share price was about $1, sources have revealed to DataRoom.
While the name of the party is unclear, it was understood to be a consortium backed by a Chinese retailer, which was interested in Metcash because of its distribution channels as a wholesaler.
Metcash shares are now trading at almost double that level, yesterday closing at $1.75. There was only interest in the company when its market value was less than $1bn, which was around September last year.
The news comes as the company, which last year had Citi as an adviser before drafting in Luminis Partners, moves to fight its way back into the grocery contest as the success of German chain Aldi hurts not just industry heavyweights Woolworths and Coles but Metcash and the independent IGA stores.
Apparently Metcash never had an official approach from the Chinese consortium last year.
The attraction of the business, which has seen its market cap recover to about $1.62bn, was access to food and supplement products provided by groups such as Blackmores.
Last year, Metcash entered into a joint venture arrangement with a Chinese group called Woomart where it started to distribute groceries to the Asian superpower online.
While one rumour circulating this week suggested Toll Holdings could have been a suitor, attracted by its logistics capabilities, that was swiftly squashed by sources around the market.
Meanwhile, investment bank Macquarie has apparently been trying to float Brand Developers, the infomercial shopping business based in New Zealand.
Fund managers recently engaged with the business as part of attempts to raise equity prior to the float.
However, sceptics believe a float is unlikely.
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