CHS sells $200m bond

CHS Electronics has rekindled speculation of a UK acquisition after the distributor revealed plans to issue a $200 million bond to raise capital.

A meeting in London between CHS officials and investors on 27 March added further fuel to rumours that the US distributor was focusing on the UK for its expansion.

Peter Rigby, director of marketing and communications at CHS, said: 'The London stock market is as strong as any other, and the company is looking to increase its international investment.'

The bond will come to fruition in seven years, meaning the value of the investment will mature in 2005.

Rigby added: 'Basically, anyone buying up these shares cannot sell before this time period, so it really is a long-term investment.'

Rumours have already flared up over CHS' plans to buy UK distributor Northamber, after it was discovered that a number of meetings had taken place between both companies (PC Dealer, 28 January).

However, Northamber refused to comment on the US distributor's plans.

Rigby remained non-committal over rumours of UK acquisitions and added: 'It is part of CHS' strategy to grow capital and grow market share.'