JB Hi Fi 'Taken Out By Predator'?

Written by Oonagh Reidy     15/04/2014 | 09:15 | Category: INDUSTRY

Streettalk is tipping the technology retailer could be subject to a takeover

JB Hi Fi 'Taken Out By Predator'?

AFR Streetalk has indicated of rumors a predator could be eyeing up JB Hi-Fi, including Wesfarmers, owners of Coles, in a takeover deal worth $2 billion

The report comes days after David Jones' takeover by South African based Woolworths, tabled last week.  

JB Hi-Fi has enjoyed amazing growth, despite the recent retail slump, FY14 net profit soared 10% to $90.3 million, sales rose to $1.94 billion and share price has also risen significantly, and now stands at $20.44.

However, The Motley Fool reckons JB's would be targeted not by a local but by a foreign buyer, similar to David Jones' buyer. 

"Perhaps the biggest cue from the Woolworths/David Jones deal is that a foreign-owned company could be the one most likely to swallow JB Hi-Fi." 

However, JB Hi-Fi CEO Terry Smart dismissed the reports as "rumors...there's no substance to them." 

A possible takeover is an "old chestnut" that comes out every so often, he told Channel News. " Its nothing we're aware of."

Woolworths, is no relation to Aussie-owned Woolies who sold off unprofitable Dick Smith for a small sum, only to be snatched up by an investment group, who turned the business into a seriously profitable tech retailer. 

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