Currys Stands Firm, Turns Down £700m Takeover Proposal from US Firm Elliott.
Electrical retail giant Currys has rebuffed a takeover bid from US investment firm Elliott. With over 800 stores worldwide and a workforce of 28,000, Currys cited a valuation of approximately £700 million in response to the proposal. However, the company expressed dissatisfaction, deeming the offer as significantly undervaluing its worth.
Elliott, recognized for its activist investor approach, has a history of pursuing companies to effect changes in their management. Notably 2018, the investment firm acquired the UK bookshop chain Waterstones. Currently, Elliott is deliberating whether to proceed with a formal offer for Currys. Under UK takeover regulations, the firm has until March 16 to decide.
Like numerous other High Street businesses, Currys has grappled with declining sales as consumers tighten their spending. Despite reporting a 3% drop in like-for-like sales during the crucial Christmas trading period, Currys managed to increase its profit forecast for the year through strategic cost-cutting measures.
The company’s shares, however, have experienced a significant decline of over a third in the past year, closing at 47.08p on Friday and valuing Currys at approximately £534 million. In response to Elliott’s proposal, Currys released a statement indicating that its board had thoroughly reviewed the unsolicited offer. The board concluded that the proposal failed to adequately value the company and recognize its future growth prospects.
In addition to its presence in the UK and Ireland, Currys operates under the Elkjøp brand in the Nordic region. Last November, the company made headlines by announcing a deal to sell its Greek business, trading under the Kotsovolos brand, for £175 million. Despite current market challenges, the rejection of Elliott’s takeover bid underscores Curry’s confidence in its intrinsic value and future potential.
