Australian retailer Coles Group is reportedly considering selling off its business units piecemeal in an attempt to generate competition among potential buyers.
Go deeper with GlobalData
Concerns that the company may not fetch top-dollar were aroused after private equity investors pulled out of a consortium bid for the entire business. The exit of KKR, Bain Capital and CVC from the race to acquire Coles has cleared the way for a bid from Australian conglomerate Wesfarmers.
According to a report in The Australian which cited sources close to the sale process, rival retailers Woolworths and Harvey Norman have expressed interest in acquiring the group’s Officeworks business.
When Australia’s second largest retailer put itself on the block in April, Coles said that it would consider all possible sale options. However, the focus of negotiations has thus far remained on a sale of the whole company.
Outlining the group’s plans for a sale in March, Coles chairman Rick Allert said that the company would consider bids for the entire company, the supermarket division, its discount chain Target and stationery unit Officeworks. The company is also mulling the possibility of selling a substantial stake in its supermarket operations and remaining listed, Coles said. The demerger of Target and Officeworks is also under consideration.
“In short, we intend to leave no stone unturned in looking at all options that could be in the interests of our shareholders,” Allert concluded.
