JD.com Considering Stake in U.K. Electronics Retailer Currys
Currys Shares Surge on Potential Stake from JD.com
London-listed shares in Currys (LON:) saw a significant spike on Monday following an announcement from Chinese e-commerce giant JD.com. The company stated that it is currently in the early stages of assessing the possibility of acquiring a stake in the British electronics retailer.
Rejection of Previous Offer
JD.com’s announcement comes in the wake of Currys rejecting a previous offer of 62 pence per share from U.S. private equity group Elliot Advisors. Currys argued that the bid undervalued the business despite representing a substantial premium to its closing share price on Friday.
Possible Increase in Offer
According to reports from The Times newspaper in the U.K., Elliott is considering the potential of increasing their initial offer for Currys.
Exploratory Talks with JD.com
Furthermore, a separate report in the Telegraph newspaper revealed that JD.com has been engaged in exploratory discussions with representatives from Currys in recent weeks.
Currys’ Restructuring Efforts
Currys, a retailer offering a wide range of products such as washing machines and mobile phones, has been focusing on restructuring its operations to enhance its financial position and improve shareholder returns. In a move to reduce debt and the net deficit of its pensions fund, the company sold its Greek unit for an enterprise value of 175 million pounds last November.
The potential stake from JD.com and the ongoing strategic maneuverings from all parties involved signal a period of transformation and potential growth for Currys amidst its restructuring efforts.
