Elliott Advisors ends takeover pursuit of Currys after two rejected bids

Elliott Advisors will not make another offer to buy Currys after the electronics retailer rejected two previous proposals.

The US private equity giant, which owns the Waterstones bookstore chain, said it would not submit a higher offer after “multiple attempts” to negotiate with Currys’ board.

Last month, the group received takeover bids worth around £682m and £750m rejected by Currys, which said the bids “significantly undervalued the company and its future prospects”.

Analysts at Peel Hunt estimated bosses at the London-listed company were unlikely to accept an offer of less than £900m.

A prominent Currys investor, the JO Hambro Capital Management UK Equity Income fund, has suggested the business be held for at least £1bn.

Under the Municipal Acquisitions and Mergers Code, Elliott had until 5 p.m. on March 16 to declare his intention to submit another proposal or withdraw.

On Monday, Elliott said he was “not in an informed position to make an improved offer for Currys based on the public information available to him.”

Currys shares fell 8.45 per cent to 59.05p after this announcement and have fallen approximately 60 per cent in the last five years.

Elliott’s withdrawal leaves Chinese online retail giant JD.com as a possible candidate for Currys, which operates more than 800 stores in eight countries.

In February, JD.com revealed it was in the “preliminary stages” of examining an acquisition deal, raising speculation of a bidding war for Currys, although it has yet to submit an offer.

The Beijing-based company, which earned nearly $150 billion in revenue last year, is one of the top two Chinese e-commerce retailers along with Alibaba-owned TMall.

Russ Mould, investment director at AJ Bell, said: ‘It makes sense to want to own Currys. It is the last major electrical goods seller in the entire UK to still have a physical store presence.

“There are still many people who like to go to a store for advice or technical assistance, compare products in person and be able to collect the items without having to risk a courier losing or damaging their goods during transport.”

JD’s interest in Currys comes as the latter battles slowing demand for goods such as televisions and computers amid widespread cost of living pressures and the end of Covid-related restrictions.

It is also happening amid a frenzy of foreign companies taking advantage of cheap valuations and a weaker pound to snap up London-listed companies.

Earlier this month, logistics group Wincanton accepted a £762m approach from Connecticut-based GXO Logistics, while US technology firm Viavi Solutions agreed a 175p-per-share bid for the logistics provider. Spirent telecommunications test equipment.

Major acquisition deals completed last year include confectionery giant Mars’ £534m acquisition of Hotel Chocolat and Apollo Global Management’s acquisition of Wagamama owner The Restaurant Group.