Feeds

CHS bigwig launches European MBO bid

Update: But receivers still want to sell CHS UK as going concern

  • alert
  • submit to reddit

Mobile application security vulnerability report

CHS Electronics today saw an MBO bid launched to buy 51 per cent of the EMEA business. The new EMEA operation would be led by Mark Keough, currently chief operating officer for CHS Electronics worldwide. Keough said he had the backing of manufacturers who "unanimously view this as a positive move". The CHS board is due to discuss the offer in the US today. Meanwhile, CHS Electronics has put subsidiary Metrologie UK up for sale to try and salvage its UK sales arm. The distributor announced Friday that CHS Electronics Plc, a subsidiary of CHS Electronics Holdings in the UK, had been placed in receivership by creditor Deutsche Financial Services (DFS). Today it revealed it was in talks to sell Metrologie UK and parent company CHS Electronics Holdings to raise cash to remove the subsidiary from receivership. DFS is calling in a £17 million debt on CHS. This comprises of a loan of £12 million owed by CHS Electronics Plc, and a further £5 million from a loan to CHS Germany guaranteed by the UK PLC. According to a statement by Peter Rigby, CHS' marketing director, both loans are secured by receivables of £20 million. Debts to other creditors were not disclosed. Rigby said the move from DFS was "unexpected and unannounced", but that the sale of the two UK operations was expected to be finalised within the next 48 hours. He maintained that Karma UK was a separate business, so it was not for sale and would remain unaffected by the action. Both Metrologie UK and Karma UK were open for business this morning. CHS Electronics Plc has 260 staff, with around 160 of these based in Brentford, and the remainder in Woking. Staff were this morning looking for alternate jobs within the industry, sources said. Metrologie has around 160 staff in the UK. Rigby, who said his own position remained undecided due to these recent events, commented: "It is quite likely, and I am hopeful, that a buyer will be interested in keeping the staff." Receivers BDO Stoy Hayward said it was still seeking to sell the business as an ongoing concern, in a company statement. Simon Michaels, a partner at BDO Stoy Hayward, said: "CHS Electronics are a significant player in this market and can offer a substantial client base to a potential buyer." A BDO Stoy Hayward representative was unable to confirm names of bidders, but said there had been a number of potential buyers over the weekend. She confirmed that an announcement was expected later today. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.