- Elliot withdraws Currys offer
- Currys rejects undervalued bids
- JD.com might still bid
Elliot Advisors, an American investment firm, reconsidered its acquisition offer for Currys after the retailer’s board “multiple times” rejected it.
It initially made an offer for the electrical chain, valued at £700 million, subsequently increasing to £757 million.
However, Currys rejected the offers, asserting they “substantially underestimated” the company’s worth.
Currys is still susceptible to a proposal from JD.com, a Chinese company that expressed interest in the firm last month.
Currys maintains a global presence with over 800 stores and 28,000 employees. It operates approximately 300 stores and has 15,000 employees in the United Kingdom.
Elliott, the owner of Waterstones in the United Kingdom, announced on Monday that it had attempted to communicate with the Currys board but had decided to withdraw.
The entity stated that it needed more information to formulate an enhanced offer for Currys using the public data at its disposal.
According to a statement, Elliott thus affirms that it has no intention of submitting an offer for Currys.
As consumers reduced their spending in response to the rising cost of living over the past few years, many retailers were impacted. Currys reported last month that underlying sales had decreased by 3% during the crucial Christmas trading period.
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Notwithstanding, the organization raised its annual profit projection with cost reductions and elevated profit margins on a subset of its services.
Additionally, analysts have observed that Curry’s market share and profitability contribute to the company’s perception of a low share price, which has generated investor interest.
Curry’s stock plummeted 8% in early trading on Monday,dfollowingclosure that Elliott Advisors had withdrawn its takeover interest.
Last month, currys.com responded to JD.com’s confirmation of interest by stating that it was “in the very preliminary stages” of assessing a potential bid.
By United Kingdom acquisition regulations, JD.com must submit a formal offer by March 18th, failing which it shall terminate the agreement.
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