Fashion retailer Ted Baker has launched a formal sales process after receiving unsolicited bids from private equity firm Sycamore Partners and an unnamed third party.
Ted Baker had received two non-binding proposals from Sycamore Partners, but both were rejected because the retailer felt they significantly undervalued the business. The second proposal, which was rejected last week, valued Ted Baker at £253.8m.
The company has now received an “improved proposal” from Sycamore, as well as a bid from a third party interested in the company. Ted Baker did not disclose the value of either of the fresh bids for the business.
Due to the increased interest, the retailer has now agreed upon a formal sales process following discussions with the UK Takeover Panel.
In a statement, it said: ”In view of the interest expressed by potential offerors, and having consulted its major shareholders, the board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the board considers attractive relative to the standalone prospects of Ted Baker as a listed company.”
Shares in the fashion retailer jumped as high as 15% to 147p following the announcement from the company.
Ted Baker added that it had not yet discussed the formal sales process with Sycamore and invited parties interested in making a proposal to submit non-binding proposals to its financial advisers, Evercore and Blackdown Partners.
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