If the retailer goes ahead with a public listing.
If The Good Guys do not accept the $850 million offer from JB Hi-Fi and decide on a public float, the Muir family could retain up to 40% of the business, according to an article that appeared in the SMH.
JB Hi-Fi reportedly dispatched an offer for The Good Guys late last week and sources claim that it is near the top of the shortlist. Steinhoff and Tata of India are also competing for The Good Guys business.
At an Australia-Israel Chamber of Commerce lunch in Sydney last month, The Good Guys CEO Michael Ford confirmed that he would prefer an IPO.
The Good Guys executive chairman Andrew Muir
One of the fund managers raised the issue of the founding family’s stake during the Good Guys road show last week, suggesting a 40% interest for the Muir family was in line with market expectations for the retailer, according to the article.
One retail analyst said the Muir family’s stake would create an “overhang”, but would mean they would have “skin in the game”.
“I don’t think it’s a deal-breaker and for some investors, given what’s gone on in the past, they want the family to have a shareholding. The bigger question is why are they selling now? There is a feeling they are getting close to the price they want,” the analyst reportedly said.
“I think the business is good and the systems are very good but the issue is what’s left for the next investors?”.
Last month, The Australian Competition and Consumer Commission (ACCC) requested views on the proposed acquisition of The Good Guys by JB Hi-Fi with a focus on the impact on competition.
During this process, it has been business as usual for The Good Guys who recently opened its 101st store at Chirnside Park, located in Melbourne’s north-eastern suburbs.
The retailer is also currently trialling an innovations store in Essendon, Victoria and has opened a training centre to deliver key management programs.