Currys shares surge after attracting takeover interest
SHARES in Currys soared as the electricals retailer could become at the centre of a bidding war after drawing attention from two potential buyers.
The share price of the FTSE 250-listed business was up by about a third in early trading yesterday after saying it had rejected a takeover bid worth about £700 million from the owner of Waterstones, Elliott Advisors.
It is also being eyed up by Chinese retail giant JD.com over a possible deal to buy the business.
Currys said the offer from US private equity giant Elliott was “unsolicited” and that the board felt it “significantly undervalued the company and its future prospects”.
The proposal valued the business at 62p per share, which would have been higher than the firm’s current share price valuation.
Nevertheless, Currys’ board unanimously rejected the offer on Friday, it said.
Elliott took control of bookseller Waterstones in 2018, buying a majority stake from Russian billionaire Alexander Mamut who rescued the chain from near-collapse in 2011.
Meanwhile, JD.com said it was “in the very preliminary stages” of evaluating a deal which could include an offer for the entire share capital of Currys.
JD.com says it is China’s biggest online retailer, with a marketplacestyle shop that sells everything from electronics and furniture to food and household essentials. The company stressed that there is no certainty that an offer will be made.
Currys struck a deal last year to sell its Greek and Cypriot arm for 200 million euro (£171 million), as it focuses on its larger UK and Ireland business, and looks to turn around its loss-making Nordics division.
The retailer said sales had been slow over the crucial Christmas period because some customers were still holding back on making more expensive purchases as the cost-ofliving crisis bites.
But it said it was expecting to make an adjusted pre-tax profit of up to £115 million this year, higher than previous expectations, after making cost savings across the group.