UK electronics chain Currys rejects takeover bid from Elliott

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UK electronics retailer Currys has rejected an unsolicited bid from US investment group Elliott Management, saying it significantly undervalued the company.

The company said on Saturday afternoon that the board had on Friday unanimously rejected a proposal of 62 pence per share — a roughly 32 per cent premium to its latest price, valuing the company at about £700mn.

Elliott Management said earlier on Saturday that it was considering making a cash offer for Currys.

Elliott said there was no certainty it would make an offer for Currys. Under UK takeover regulations, it has until March 16 to table a firm offer or walk away.

Currys said there could be no certainty that an offer would be made, nor what terms it might involve. Its shares, which are down 36 per cent in the past year, traded roughly flat to close at around 47 pence per share on Friday.

Currys, which has a market capitalisation topping half a billion pounds, would mark a significant target for Elliott. It already has a substantial private equity portfolio that includes the UK bookseller Waterstones and a controlling stake in food chain Wasabi.

The electronics retailer has a strong market position in the UK and the Nordic region. In November it agreed to sell its Greek business in a £175mn deal that is expected to strengthen its balance sheet.

Chief executive Alex Baldock, who joined in 2018, has been spearheading a turnaround of the chain, which sells televisions, laptops and other electrical goods online and through 815 stores in eight countries.

During the pandemic it closed all 531 Carphone Warehouse stores it owned in the UK, with the loss of 2,900 jobs, in an effort to make its struggling mobile phone business profitable.

The US investor Elliott manages around $65bn in assets and invests in public and private markets. The hedge fund and private equity group is well known…