SYDNEY (XFN-ASIA) - A consortium of multinational private equity giants is unlikely to have bidding for Australia's second largest retailer, Coles Group Ltd, all its own way, with the break-up option canvassed by chairman Rick Allert receiving close attention from a range of smaller Australian private equity firms, the Sydney Morning Herald reported, without citing sources.
The newspaper said it is believed an offer for Coles' divisions, including the Target discount stores chains and the Officeworks office supplies chain, is being closely scrutinized by mid-market private equity firms.
It said potential suitors could include firms such as Archer Capital, Champ Private Equity, Catalyst and Ironbridge.
Last year, a Kohlberg Kravis Roberts-led consortium put an offer of 15.25 aud a share to Coles, valuing the group at 18 bln aud but it was rejected by the retailer's board.
The Herald said one argument likely to be put to Coles if a bid for separate divisions materializes is that a break-up could achieve a better outcome for shareholders.
The board is yet to set up protocols for the sale process announced by Allert on Feb 23.
Coles closed unchanged at 15.32 aud on Friday.
(1 usd = 1.28 aud)
bruce.hextall@xfn.com
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