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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now