A source close the situation said DSGi had appointed Deloitte, also the retailer’s auditor, to assist with the due diligence process.
Sale information was expected to have been distributed as Retail Week went to press.
This week, DSGi played down sale reports, having announced in May that it would conduct a strategic review of the businesses.
However, a source close to potential purchasers told Retail Week that the review has resulted in a for-sale sign being hoisted over all three businesses.
The key European electricals players, including Metro’s Media Markt, will want to run their sliderules over the businesses. Media Markt is the number one electricals retailer in Europe.
“The businesses will be on the big European electrical retailers’ hit lists, including Media Markt and Best Buy,” the source said.
DSGi’s Spanish PC City and Italian UniEuro chains have struggled against rivals such as international hypermarkets Carrefour and Auchan, Kesa’s Darty and PPR’s Fnac and buying groups such as Expert, Boulanger and Euronics.
Pali’s Nick Bubb said it was hard to see how disposals of the Spanish and Italian businesses “would add a great deal of value”. He believes DSGi would have to pay a purchaser up to£300 million “to take UniEuro off their hands”.
A sale would allow DSGi to focus on the UK and Scandinavia, as US electricals giant Best Buy prepares for its European debut.
DSGi and Deloitte declined to comment.
No comments yet