Smh:
RETAILER Harvey Norman stands to make a $143 million profit after agreeing to sell its majority holding in sporting goods retailer Rebel Sport to private equity outfit Archer Capital in a deal that values the company at nearly $370 million.
The move will give Archer a commanding position in sporting goods retailing, with Rebel’s 61 shops nationwide adding to the 70 stores under the Amart All Sports banner that Archer purchased two years ago.
Archer aims to acquire all Rebel’s shares at $4.60 each after a short period during which it plans to run its ruler over Rebel’s books.
It hopes to have the deal finalised by Christmas.
Gerry Harvey’s Harvey Norman has had majority control of Rebel since July 2001, when it bought a 55 per cent stake for just 83c a share after launching a full takeover bid.
Harvey Norman now owns 53 per cent but has six of Rebel’s eight board seats.
Archer Capital partner Peter Gold yesterday said Rebel and Amart All Sports would continue to operate separately, saying it was too early to predict the structure of the new private company.
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