Bidvest may be the best bet for cash-hungry Dawn
Distribution and Warehousing Network (Dawn) will require a large capital injection in order to turn around its fortunes. Vunani Securities analyst Anthony Clark said on Friday that Dawn would be best suited being bought by Bidvest to enhance its products and services. He said while Dawn may be able to survive and continue to trade for a couple of years, new management had struggled to turn it around and the company would struggle to get cash with which to grow.
Clark said Bidvest, which had considered buying Dawn before, would be able to inject cash into the group and that Dawn’s products would fit well into Bidvest’s consumer goods businesses. Dawn, which distributes branded hardware, sanitary-ware, plumbing, kitchen, engineering and civil products throughout SA and parts of sub-Saharan Africa, has struggled in recent years as a result of the lack of new infrastructure projects and internal problems with its operating systems. Dawn, which has been a major provider of building...