Currys Rejects £700 Million Takeover Bid from US Firm Elliott

Currys, the electrical goods retailer, has turned down a £700 million takeover offer from US investment firm Elliott, stating that the bid significantly undervalued the company and its potential for growth.

The proposed acquisition, which aimed to acquire Currys for approximately £700 million, was rebuffed by the company’s board, highlighting their belief that the offer did not accurately reflect Currys’ true value.

Elliott, known for its activist investment approach, has previously acquired UK book shop chain Waterstones in 2018. Now, the firm is considering its next steps regarding Currys and has until March 16th under UK takeover regulations to make a formal bid.

Currys, operating over 800 stores globally and employing 28,000 individuals, has faced challenges amid declining sales, a trend observed across many High Street businesses. Despite a 3% decrease in like-for-like sales during the crucial Christmas trading period, cost-saving measures enabled Currys to raise its profit forecast for the year.

However, the company’s stock has experienced a sharp decline, dropping by more than a third over the past year. Shares closed at 47.08p on Friday, valuing Currys at approximately £534 million.

In response to Elliott’s bid, Currys emphasized its commitment to maximizing shareholder value and ensuring a sustainable future for the business. The rejection comes as Currys continues to navigate evolving consumer trends and pursue strategic initiatives, such as the recent sale of its Greek business under the Kotsovolos brand for £175 million.

As the situation unfolds, both Currys and Elliott are closely monitoring developments in what could potentially lead to a significant shift in the retail landscape, should Elliott choose to proceed with a formal offer.