Currys investor criticises ‘absurdity’ of LSE

A MAJOR Currys investor has hit out at the “absurdity” of valuations on the London Stock Exchange as two more companies prepare to quit.

JO Hambro Capital, a top 10 Currys shareholder, criticised the dismal valuations the London stock market attaches to businesses, saying Currys should be worth far more than what investors have valued it at.

The electronics retailer is subject to a possible bidding war between suitors Elliott Advisors and China’s JD.COM. Currys recently rejected a 67p-per-share bid from Elliott, which valued the business at about £756m.

Hambro’s veteran fund managers, James Lowen and Clive Beagles, said an “acceptable offer” for the tech retailer would be closer to 100p per share. The fund managers pointed out that Currys had sales of £9.5bn last year.

Mr Lowen and Mr Beagles wrote in a note to investors: “This clearly shows the absurdity of UK stock market valuations.” The criticism adds to fears that low valuations in London are leaving companies vulnerable to foreign takeovers and risk tipping the stock market into a spiral of decline.

The gloom over the London market intensified yesterday after one of its oldest constituents was also snapped up by an American buyer for £1bn.

Spirent Communications, which has been listed since 1955, agreed to an allcash takeover by US rival Viavi Group.

The British tech company works with companies such as Amazon and Meta, testing their equipment. Shares surged 63pc to 177p.

It marks the fourth foreign bid for a London-listed company in the past few weeks.

£9.5bn Currys’ sales last year. The electronics retailer recently rejected a 67p-per-share bid from Elliott Advisors