Grays to merge with online veteran

 

graysOnline auctioneer, Grays Online, will merge with online department store, DealsDirect, under new CEO, Mark Bayliss.

Grays will be listed online under DealsDirect owner, Mnemon. DealsDirect listed on the Australian Stock Exchange on January 17 in a backdoor listing.

At the time, CEO, Michael Rosenbaum told Inside Retail the $6.2 million raised in the IPO would be used to purchase fellow e-commerce businesses to build the stable. 

The new combined company of both DealsDirect and Grays is expected to have sales of around $500 million.

Fund manager, Caledonia, has a 25 per cent stake in Grays, while the new entity will be 70 per cent owned by Grays shareholders.

Grays chairman, Will Vicars, will give up his position, but will take up a board position with Mnemon instead.

In other IPO news, digital signage provider, oOh! Media, is also seeking to list on the ASX, with a $500 million capital raising now underway.

A trade sale is also under consideration should a suitable buyer be found, however, an IPO is more than likely to go ahead in late -14 or early 2015.

Macquarie Group has been appointed as advisor of the sale process.

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