Locally based ambitious private equity fund EB Private Equity has bid £1.1bn (AU$1.65bn) for the prominent Australian department store chain David Jones.
David Jones earlier this year scared the Australian markets with a profits warning slashing their profit forecasts for the year by over 40%. Since then they have continued to report deteriorating results and their share price has fallen by more than half over the last twelve months to a recent low of £1.30. Speculation has continued for some time that they would be a bid target and it appears EB Private Equity have made the move.
The low profile commonwealth focused fund is heading the acquisition consortium that includes some of the largest Australian real estate funds. They are being advised by Jones Lang LaSalle, Chalkhill Partners and other advisers. When reached for comment EB Private Equity said they had no comment at this time. David Jones could not be reached for comment.