Electronics retailer Currys, which boasts a global presence with over 800 stores and a workforce of 28,000 employees, disclosed that it has received an acquisition offer valuing the company at approximately £700 million.
However, Currys swiftly rebuffed the proposal, deeming it to “significantly undervalue” the company.
The bidder behind the offer, Elliott Management Corporation, is renowned as an activist investor, specializing in acquiring stakes in companies to instigate operational changes.
In its notable track record, Elliott acquired the UK bookshop chain Waterstones in 2018, though the financial details of the transaction remain undisclosed.
Elliott has indicated that it is deliberating whether to formalize its offer for Currys. Under the regulatory framework governing UK takeovers, the investment firm has until 16 March to make a definitive decision.
Like numerous other retailers on the High Street, Currys has grappled with declining sales, a consequence of consumer spending cutbacks. Despite reporting a 3% drop in like-for-like sales during the crucial Christmas trading period last month, Currys managed to bolster its profit forecast for the fiscal year, buoyed by cost-cutting measures.
Nonetheless, the company’s stock has experienced a precipitous decline, plummeting by over one-third in the past year. As of Friday’s market close, shares were valued at 47.08p, pegging Currys’ market capitalization at approximately £534 million.
In response to Elliott’s overture, Currys’ board conducted a thorough review and concluded that the proposal was inadequate, failing to reflect the company’s intrinsic value and its promising future prospects.
Beyond its UK and Ireland operations, Currys also operates under the Elkjøp brand in the Nordic region. Last November, the company announced a divestiture agreement, agreeing to offload its Greek business, trading under the Kotsovolos brand, for £175 million.
