Home > Latest News > EXCLUSIVE: Dick Smith Tipped To Aquire Melbourne Reseller, Anchorage Capital Tipped To Bail This Year

EXCLUSIVE: Dick Smith Tipped To Aquire Melbourne Reseller, Anchorage Capital Tipped To Bail This Year

EXCLUSIVE: Dick Smith Tipped To Aquire Melbourne Reseller, Anchorage Capital Tipped To Bail This Year

Anchorage Capital, the Company that acquired the struggling retailer for $20m and then paid $74M to avoid paying Woolworths a percentage of profits, only to on-sell shares in the Company for $320M, is looking to bail on the mass retailer according to sources. 

Dick Smith, which is currently is in a head on battle with Harvey Norman and JB Hi Fi, is due to announce its latest results this week with insiders claiming that Anchorage Capital will sell down their shareholding by December 2014. 

Anchorage’s 20% remaining stake along with $30m dollars’ worth of shares owned by senior management including Marketing Director Neil Merola and CEO Nick Aboud are set to be released from escrow tomorrow which is when Dick Smith is tipped to announce the acquisition of Computelec.

ChannelNews has been told that Dick Smith has acquired the 27 year old reseller in an effort to take on JB Hi Fi’s Network Neighbourhood which was renamed JB Hi Fi Education Services Division.

JB Hi Fi acquired Network Neighbourhood three years ago in an effort to expand into the commercial market a move that has been highly successful for the mass retailer. 

The man who drove the acquisition, Richard Murray, recently took over as CEO of JB Hi Fi. 

The acquisition price paid by Dick Smith has not been disclosed. 

Toshiba who recently expanded its relationship with Dick Smith in an effort to bolster their flagging consumer PC sales is believed to have introduced Dick Smith to Computelec, who are a major seller of Toshiba PC products into Victoria’s private school’s market.

Toshiba CEO Mark Whittard has not commented on the acquisition despite being asked about the role that Toshiba played in the buyout. 

Back in December when Dick Smith was floated on the Australian Stock Exchange Anchorage Capital took $358.1M out of the Company. Anchorage Capital Chairman Phil Cave who is currently on the board of Dick Smith is tipped to resign by December 31st 2014. 

Recently Cave appointed two new Directors to the Board, they included former Lion boss Rob Murray who joined as an Independent Non-Executive and Mr Michael Potts the Chief Financial Officer for Dick Smith who joined as an Executive Director.