JB Hi-Fi dampens speculation of Good Guys acquisition

JB Hi-Fi has once again downplayed its bid to acquire The Good Guys following continued media speculation.

The Australian and The Australian Financial Review both claimed that JB Hi-Fi would make a bid for the whitegoods retailer in the range of $850 million and $900 million next week.

Both newspapers reported that JB Hi-Fi would kick off a $300 million equity raising measure next week to fund the acquisition.

In a notice to the Australian Securities Exchange, JB Hi-Fi said that while it remains in the sales process, it still hasn’t made a decision to acquire The Good Guys.

“JB Hi-Fi evaluates all possible opportunities against a range of factors and would only pursue an acquisition if it made compelling financial sense for its shareholders,” chief executive Richard Murray said in a statement.

“JB Hi-Fi is aware of its continuous disclosure obligations under the ASX Listing Rules and will ensure it is in full compliance at all times.”

The Good Guys has continued to assess the possibility of an IPO on the ASX despite interest from JB Hi-Fi. The addition of The Good Guys' 100 stores would give JB Hi-Fi a combined national footprint of 294 stores.

JB Hi-Fi’s revenue was up 8.3 percent to reach $3.65 billion in the 2016 financial year, with an 11 percent boost to its hardware and services business.