US investment firms are shopping global consumer electronics retailers with the big question Could JB Hi Fi be a target.
US investment firm Elliott is in the hunt having put in a bid for the UK’s largest CE retailer Curry’s.
Management rejected the offer claiming the unsolicited takeover bid undervalued the company.
The company said late on Saturday night that the board had 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.
The big difference between JB hi Fi and Curry’s are that the UK business is struggling with their shares in freefall.
Elliott has said it is now considering whether or not to make a formal offer for Currys, under UK takeover regulations it has until 16 March to decide.
Ther companies shares, are down 36 per cent in the past year, JB Hi Fi shares in comparison are up over 40%.
Currently Currys, has a market capitalisation topping A$970 million and would mark a significant target for Elliott claims the Financial Times.
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 A$340M deal that is expected to strengthen its balance sheet.
During the pandemic it closed all 531 Carphone Warehouse stores it owned in the UK, with the loss of 2,900 jobs.
Unlike JB Hi Fi the business was struggling to turn their mobile phone business into a profit centre.
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 for taking an activist approach to investing, engaging in boardroom battles.
