US investment group Elliott Advisors has stated that it does not intend to make another offer for Currys after “multiple” attempts to engage with the electricals retailer’s board were rebuffed.
Elliott initially offered to buy Currys for 62p a share before raising its bid to 67p at the end of last month. Currys said the proposals “significantly undervalued the company and its future prospects”, with the stance backed by its largest shareholder Redwheel.
In a statement issued this morning, Elliott said the unwillingness of the retailer to engage meant it was “not in an informed position to make an improved offer for Currys on the basis of the public information available to it”, adding: “Elliott therefore confirms it does not intend to make an offer for Currys.”
Shares in Currys were down nearly 8% to 57p in early trading.
Currys has a strong market position in the UK and the Nordic region but has struggled to grow sales and profits during the cost of living crisis. It sold all its Carphone Warehouse stores during the pandemic and is close to offloading its operations in Greece to strengthen its balance sheet.
After Elliott’s first bid, Chinese e-commerce giant JD.com revealed that it was also considering making an offer for Currys, raising the prospect of a bidding war.
City analysts have suggested that an offer would need to be pitched at about 80p a share or higher for the board of Currys to seriously entertain it.
NAM Implications:
- Given the uncertainty re its future ownership
- …added to uncertainty re higher bids…
- …tis uncertainty will eventually reach the aisles.
- Watch this space…
