Pet care company Greencross Limited has confirmed it has received a number of“credible proposals” regarding the potential sale of the business to outsideparties.

The retailer confirmed the rumours in a statement to the ASX, following areport in the AFR that suggested a private equity firm was looking topurchase the struggling business.

“The proposals are subject to a number of conditions and are expressed asbeing non-binding and incomplete,” Greencross’ head of investor relationsRobert Wruck said in a note to investors.

“The proposals are required to be kept confidential, and there is no certaintythat any proposal will result in a transaction involving Greencross, what theterms of any such offer would be, or whether there will be a recommendation bythe Board of Greencross.”

The company’s net profit dropped 51 per cent to $20.7 million in FY18, due toa sizeable write-down of exceptional items, signalling a year of “substantialchange”.

But the recent interest from private equity investors would appear to back upwhat Greencross chief executive and managing director Simon Hickey asserted inAugust – namely, that the company’s mix of retail and services and highlyengaged customer database are a potent mix.

Pet care company Greencross Limited has confirmed it has received a number of“credible proposals” regarding the potential sale of the business to outsideparties.

The retailer confirmed the rumours in a statement to the ASX, following areport in the AFR that suggested a private equity firm was looking topurchase the struggling business.

“The proposals are subject to a number of conditions and are expressed asbeing non-binding and incomplete,” Greencross’ head of investor relationsRobert Wruck said in a note to investors.

“The proposals are required to be kept confidential, and there is no certaintythat any proposal will result in a transaction involving Greencross, what theterms of any such offer would be, or whether there will be a recommendation bythe Board of Greencross.”

The company’s net profit dropped 51 per cent to $20.7 million in FY18, due toa sizeable write-down of exceptional items, signalling a year of “substantialchange”.

But the recent interest from private equity investors would appear to back upwhat Greencross chief executive and managing director Simon Hickey asserted inAugust – namely, that the company’s mix of retail and services and highlyengaged customer database are a potent mix.
Source: Inside Retail Australia

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