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The owner of Noel Leeming Group, New Zealand's largest electronics retailer, said it was open to offers for the company, valued at about A$300 million ($355 million), after a media report that Australia's Harvey Norman Holdings Ltd was interested.
However, Gresham Private Equity said today it had not approached any potential buyers and had not engaged an investment bank to help with a sale.
Gresham managing director Roy McKelvie told Reuters by telephone that no formal auction was underway, but if he received an attractive offer it would be considered.
The Australian Financial Review said Harvey Norman, an electronics and furniture retailer, was considering a bid for Noel Leeming.
Gresham bought the Noel Leeming Group, which also includes the Bond and Bond store chain, in 2004 for $138.5m.
The business daily said Harvey Norman may hit competition issues if it bids as it is already the second-largest electronics retailer in New Zealand with around 20-25 per cent of the market.
Shares in Harvey Norman last traded down 3.3 per cent at A$5.89. The stock, valued at around US$5.5 billion, has gained 55 per cent so far this year and hit a life high of A$6.36 on Wednesday.
Harvey Norman has benefited from surging sales of flat-screen TVs and laptop computers, and has been expanding overseas, where it has 53 stores, including 24 in New Zealand, 14 in Singapore and a handful in Slovenia.
- REUTERS
