Anchorage Flogs Dick Smith Shares
Anchorage Capital, the investment firm who bought the tech retailer from Woolworths for $94 million in 2012, and turned the business around, has sold its remaining 47,302, 273 million shares in the company.
The 47.3 million Dick Smith (DSH) shares were sold at $2.22 each to Australian fund managers, and was oversubscribed, brokers indicated. The deal was worth $105 million, in total.
It has long been speculated Anchorage would bail from DSH and last month appointed Macquarie Capital to advise on its 20% remaining stake in the retailer.
Today’s announcement to the ASX comes weeks after Dick Smith announced a steller FY14, with net profit (NPAT) of $42.1m for the 52 weeks to 29 June – six times stronger than FY13.
Sales grew 4.2% to $1,227.6m, with an upturn of 13.6% in H2 across its Australian stores.
Shares closed yesterday at $2.29, the highest price its been in several months.
The company was floated late last year.
Company CEO Nick Abboud’s stake is unaffected by Anchorage’s sell down, CN has been told. He currently owns around 15 million shares.