Technology retailer Currys has issued a statement following an unsolicited takeover bid by Waterstones’ owner Elliott Advisors, with Chinese ecommerce giant JD.com also looking at a cash offer.
Currys said: “The board of Currys confirms that it received an unsolicited, preliminary and conditional proposal from Elliott regarding a possible cash offer for the entire issued and to be issued share capital of the company at 62 pence per share.
“The board of Currys considered the proposal, together with its financial advisers, and concluded that it significantly undervalued the company and its future prospects. Accordingly, on 16 February 2024, the board of Currys unanimously rejected the proposal.”
The US-based investment company now has until 16 March to make an offer for the electricals retailer under the City Code on Takeover and Mergers Code. Elliot confirmed that it is considering such a move.
While, JD.com is in the “very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys”.
According to reports, Currys and JD.com have held exploratory discussions that have included proposals for a joint venture, strategic investments and a possible takeover. A Currys’ shareholder has recommended the board holds out for 75p-a-share “at a minimum”, and price the business at £800mn.
In January, Currys reported strong mobile sales but this was offset by weaker trends in TV and computing in the 10 weeks ending 06 January 2024. In the UK, its like-for-like sales fell 3% year on year. However, the electricals retailer described its profits as “robust” thanks to stable gross margins and continued cost savings. It forecast full-year profits of between £105mn – £115mn.
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