Electrical retailer Curry is the subject of a takeover battle after JD.com confirmed it was considering making a bid, joining US investment firm Elliot whose bid was rejected over the weekend.
Currys shares were 34% higher on Monday after it rejected a 62p bid from Elliot saying it significantly undervalued the company.
The Telegraph reported JD.com had held talks with Currys, althoughht this did not guarantee JD would make a bid. The presence of a second has helped Currys shares move past the initial 62p bid from Elliot.
Currys is the latest UK-listed company to receive the interest of overseas companies circling a host of undervalued high-quality UK companies not appreciated by the UK market.
“There will be fresh worries swirling this morning about the potential of more takeovers of London-listed companies. Currys, the electrical retailer, is the latest to be circled by an overseas buyers. It’s rejected an unsolicited bid from investment firm Elliott and now Chinese e-commerce giant JD.com has confirmed its mulling an offer,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“It’s no secret that it’s been hard going for Currys recently. It’s been hit hard by cost-of-living headwinds as shoppers find the purchases of bigger ticket items hard to justify, particularly as many purchases were brought forward during the pandemic.
“Its shares have fallen 90% since their peak in 1995 and have lost further ground since the start of the year. It’s yet another asset considered to be cheap, weighed down by the current economic malaise, but investment firm Elliott clearly sees that there is value to be found in its omnichannel model, and opportunities of a turnaround ahead.”