Currys has rejected a takeover proposal by US investment firm and owner of Waterstones Elliott Advisors as it “significantly undervalued” the company.
Elliott’s bid valued the electricals retailer at £700m, which was 32% higher than the £533m valuation the company had at the close of trading on the London stock market on Friday.
The investment firm has until March 16 to make a formal offer for Currys, according to UK takeover rules.
This comes after Currys upgraded its group adjusted profit before tax guidance to be “ahead of consensus expectations” at £105m to £115m, despite reporting a 3% slip in like-for-like sales in the UK in the 10 weeks to January 6.
Currys said: “The board of Currys confirms that it received an unsolicited, preliminary and conditional proposal from Elliott regarding a possible cash offer for the entire issued and to be issued share capital of the company at 62 pence per share.
“The board of Currys considered the proposal, together with its financial advisers, and concluded that it significantly undervalued the company and its future prospects. Accordingly, on February 16, 2024, the board of Currys unanimously rejected the proposal.”
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