Currys Turns Down £700m Acquisition Offer from US Investor Elliott

Currys, a prominent electrical retailer with a global presence of over 800 stores and a workforce of 28,000, has dismissed a takeover bid from the US investment firm Elliott, valuing the company at approximately £700 million. In a statement, Currys asserted that the proposal significantly underestimated its true value.

Elliott, renowned for its activist investment strategies, engages in acquiring companies to restructure their operations effectively. Notably, Elliott acquired the UK bookstore chain Waterstones in 2018, exemplifying its penchant for strategic acquisitions.

Despite facing challenges attributed to declining sales, Currys managed to enhance its profit projections for the fiscal year through rigorous cost-cutting initiatives. Nonetheless, the company’s stock witnessed a substantial decline of over 30% in the past year, culminating in its valuation dropping to approximately £534 million, with shares closing at 47.08p on Friday.

In response to Elliott’s unsolicited bid, Curry’s board scrutinised the offer and concluded that it inadequately assessed the company’s future potential and financial prospects. The rejection underscores Curry’s resolve to uphold its perceived value and strategic trajectory amid market challenges.

Currys operates not only in the UK and Ireland but also under the Elkjøp brand in the Nordic region. Additionally, the company recently finalised the sale of its Greek subsidiary, trading under the Kotsovolos brand, for £175 million last November.

While Currys navigates through sluggish sales and market uncertainties, the decision to rebuff Elliott’s bid signifies its commitment to preserving its intrinsic value and maintaining strategic autonomy. The development prompts speculation regarding Elliott’s next course of action as the firm deliberates whether to formalise its offer for Currys by March 16 in adherence to UK takeover regulations.

In response to Elliott’s unsolicited bid, Curry’s board scrutinised the offer and concluded that it inadequately assessed the company’s future potential and financial prospects.

Currys operates not only in the UK and Ireland but also under the Elkjøp brand in the Nordic region. Additionally, the company recently finalised the sale of its Greek subsidiary, trading under the Kotsovolos brand, for £175 million last November.

While Currys navigates through sluggish sales and market uncertainties, the decision to rebuff Elliott’s bid signifies its commitment to preserving its intrinsic value and maintaining strategic autonomy. The development prompts speculation regarding Elliott’s next course of action as the firm deliberates whether to formalise its offer for Currys by March 16 in adherence to UK takeover regulations.