- Elliott Advisors considers bid
- Currys faces inflation challenges
- Elliott engages in activist investments
Currys, a London-listed electrical products store with approximately 15,000 employees, is being pursued by Elliott Advisors.
Elliott Advisors, the owner of Waterstones, is developing a £700 million acquisition plan for Currys.
Elliott, known for its activist campaigns against the boards of major global corporations, is preparing a proposal for this prominent British high street brand.
Over the weekend, it was unclear whether Elliott had officially submitted a proposal to Currys’ board; however, a typical takeover premium of about 30% on the current share price would value it at around £700 million.
Currys, with approximately 300 locations, employs more than 15,000 people in the UK.
The company adopted its current name in 2021, following the consolidation of stores previously operating under brands such as PC World, Dixons, and Carphone Warehouse.
Originally founded in 1884 as a bicycle manufacturer, it expanded to sell gramophones, radios, and toys before listing on the London Stock Exchange in 1927.
Under CEO Alex Baldock, Currys has faced the inflationary pressures impacting the wider consumer economy and retail sector.
Despite a drop in year-on-year sales during the crucial Christmas period, the company recently announced a slight improvement in profit forecasts due to cost-saving measures.
Operating under the Elkjop brand in eight countries, including Denmark, Finland, and Sweden, the company has more than 800 stores and employs 28,000 people.
It has announced a £175 million sale of some operations to the Public Power Corporation of Greece.
On Friday, Currys’ shares closed at 47.08p, giving it a market capitalization of about £525 million.
The share price has fallen by more than a third over the past year.
An official bid from Elliott would make Currys one of the most significant London-listed companies facing delisting in the past year amid a series of potential private acquisitions.
Elliott owns a stake in Waterstones, led by noted bookseller James Daunt.
Last year, it considered bids for fashion retailer Reiss and The Body Shop, which investor Aurelius bought and is now in administration in the UK.
City veteran Sir Mike Rake has been appointed as a senior adviser in Britain to help Elliott foster more cordial relationships with the boards of companies it invests in.
It has taken stakes in FTSE-350 firms in recent years, including retail centre owner Hammerson, pharmaceutical giant GlaxoSmithKline, mining company BHP, and Premier Inn hotels owner Whitbread.
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In most cases, it has pushed for strategic or managerial changes, openly or behind the scenes, establishing itself as one of the most formidable activist funds worldwide.
Paul Singer founded the parent company, Elliott Management, in the 1970s with around $1 million in capital.
Gordon Singer, Paul’s son, runs the London office, which now manages over $55 billion.
It owned a controlling interest in AC Milan before agreeing to sell the Italian Serie A club in 2022.
Under the deal with RedBird Capital Partners, it retained a minority stake.
