Currys rejects takeover bid amid rising interest

US investment company Elliott Advisors has revoked its takeover bid for Currys after the retailer’s board denied it “multiple times.”

Currys, the electricals chain, has rejected takeover offers from investment firm Elliott Advisors. The proposed offers, initially valued at £700m and later raised to £757m, were deemed to “significantly undervalue” the business by Currys.

Potential Bid from JD.com

Despite the rejection, Currys may still receive a bid from China’s JD.com, which expressed interest in acquiring the firm last month.

Details about Currys

Currys operates over 800 stores globally and employs 28,000 people. In the UK alone, it runs approximately 300 stores with a workforce of 15,000.

Elliott Advisors Withdraws Interest

Elliott Advisors, which also owns UK bookseller Waterstones, had attempted to engage with Currys’ board but ultimately decided to withdraw its offer. The firm stated that it lacked sufficient information to make an improved bid based on publicly available data.

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Challenges Faced by Curry

Currys, like many other retailers, has been affected by the rising cost of living, leading to decreased consumer spending. 

Despite a 3% decline in underlying sales during the crucial Christmas trading period, the company raised its profit forecast for the year due to cost-cutting measures and improved profit margins on certain services.

Market Reaction and Future Prospects

Following Elliott Advisors’ withdrawal, Currys’ share price fell by 8% in early trading. However, analysts believe that the company’s low share price relative to its market share and profitability makes it an attractive investment opportunity.

JD.com’s Interest

JD.com has until 18 March to decide whether to make a formal offer for Currys under UK takeover rules. The Chinese e-commerce giant had described its interest as being in the “very preliminary stages” last month.