Streettalk is tipping the technology retailer could be subject to a takeoverAFR 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.