Australia's Ascendia hires IPO advisers: source

MELBOURNE (Reuters) - Private equity firm Archer Capital has hired three investment banks to advise on a planned flotation of its Australian Ascendia Retail group, a source with direct knowledge of the situation said, in a deal that could be worth up to $725 million.

Goldman Sachs, Bank of America/Merrill Lynch and UBS will advise on an initial public offering, the source told Reuters on Tuesday.

Local media has put the value of a potential initial public offer at between A$800 million ($725 million) and A$1 billion for Ascendia, which includes sports-store chains Rebel Sport and Amart All Sports.

"They have appointed advisers and are in that long process of taking advice and considering the options," the source said.

"There are no immediate plans," to list on the Australian Stock Exchange, the source said, saying media reports that the group was aiming to list before Christmas were speculative.

Archer Capital backed a management buy-out of Amart in 2004, and added Rebel Sport in 2007. Ascendia has more than 150 stores with annual sales of A$670 million.

Ascendia is one of several private-equity owned retailers that is expected to list on the stock exchange as the economy improves.

It follows on the heels of U.S. buyout firm TPG's decision to float Myer, Australia's biggest department store chain, in a deal that could raise up to $2 billion.

(Reporting by Victoria Thieberger; editing by Jonathan Standing)