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Some news better then no news I would say! At least the bid is still on!
Https://news.sky.com/story/former-prince-andrew-aide-eyes-role-in-takeover-bid-for-currys-13080842
Nothing in the papers? If the Sky leaks have stopped then great.
We can expect an announcement that the market will spike on.
Seems a fair bit of selling and some weak holders if no w/e news appears this could fall on Monday.
It looks like Shorts are being reduced reading the RNS's, another cash offer on the cards for curry's this weekend.
Would you want to be out over the weekend?
We know what the weekend newspapers can be like!
Yeah, I liked it once when I paid £4.18 a share and then watched and even added as each management presided over value destruction. Not understaffed is the understatement of the century and part of the problem.
Rest of article...
power of humans – such as providing expert advice – as well as technology.
“There was feverish speculation that a deal would result in a ‘flood’ of cheap Chinese products”
The reverse view might be that, having once failed to realise the promised potential of a transformational merger with Carphone Warehouse, why would JD.com think that it could do things any differently by snapping up Currys?
Such questions will only be resolved if a deal – with JD.com or someone else – goes ahead. The short-term question returns to valuation.
If JD.com sees a great opportunity, is it offering enough money? Earlier this week Ian Lance, fund manager at the UK value and income team at Currys’ biggest investor, Redwheel, backed the retailer’s decision to reject Elliott’s offer.
He maintained that failings in the UK stock market mean some businesses are undervalued while investors put their money into the US instead.
“It seems likely that we will continue to see overseas corporate buyers step in to take advantage of the depressed valuations of UK equities, with ownership falling into foreign hands”
He said: “Unless this changes, it seems likely that we will continue to see overseas corporate buyers step in to take advantage of the depressed valuations of UK equities, with ownership falling into foreign hands.”
Part of the art of a deal is to see value where others don’t – an approach astutely adopted by tycoon Mike Ashley, whose influence as a Currys shareholder may also prove crucial in the response to takeover interest.
JD.com has said that it is only at the “very preliminary stages of evaluating a possible transaction”. If anything formal emerges, Currys shareholders should hold out for a valuation that reflects its longer-term prospects rather than any opportunistic bargain hunting. Especially as there are some grounds to hope that the consumer economy, and with it Currys’ fortunes, are improving.
ELECTRICALS
‘Currys shareholders should hold out for a valuation that reflects long-term prospects’
By George MacDonald22 February 2024
For pretty much as long as China’s economic star has been in the ascendant, there has been speculation that one of its new generation of digital retail powerhouses might move to swoop on a venerable UK name.
That may now happen, as JD.com ponders a bid for electricals market leader Currys.
A potential pounce prompts many questions. First and foremost, what does a Chinese ecommerce goliath see in a fairly lowly-valued UK retailer?
That low valuation is probably key. Currys, like other retailers, has found life more difficult during the cost-of-living crisis, although there are reasons for optimism – the retailer expects its results to beat consensus.
However, Currys’ share price – 68.5p at the time of writing, and up 45% over the last few days on the back of bid interest – is low compared to heights it has previously reached. It’s down 10% over the last year and has lost almost half its value on a five-year basis.
So an acquisition by JD.com, presumably for significantly more than Elliott Advisors’ reported £700m approach that was rejected by Currys, could represent a bargain.
“While JD.com is primarily an online business, and as much a logistics giant as a retailer, it has been interested in bricks and mortar for a while”
There are reasons why it might make sense for JD.com. It faces tough competition in its domestic markets so further international earnings streams would appeal.
While JD.com is primarily an online business, and as much a logistics giant as a retailer, it has been interested in how bricks and mortar could complement its existing strengths for a while.
Last November, for instance, CNN reported that Xu Lei, chief executive of JD Retail, had acknowledged limitations of its business model and that he wanted it to “build offline stores on our own and partner with existing players”.
As well as experimenting with stores in China, such as grocer 7Fresh and department store JD E-space, last year JD.com opened two Ochama “robotic” pick-up shops carrying a wide range of goods.
JD.com also has a longstanding interest in electricals. In 2020, it made a “strategic investment” in Gome, one of China’s biggest electricals chains.
Just last November, it was reported to be interested in buying Ceconomy, owner of retailers such as MediaMarkt in Europe. There was feverish speculation then that a deal would result in a ‘flood’ of cheap Chinese products.
Whether that would be so is a moot point. However, there’s little doubt that JD.com’s digital strengths, scale and power of partnerships could complement Currys’ strengths, such as an effective omnichannel model that puts value on the power ...
Today I went to visit one of the stores (Stevenage). It is very nice store, very tidy and the atmosphere was great. I spent an hour in there and only got around the half of the store. I would not say it is understaffed, and they were all very polite.
It gives you great shopping experience that for sure. You cannot get that kind of experience online or in Argos.
I like Currys
IMO I think it is highly likely that when we wake up on Monday there is likely to be at least the emerging of either a new bid from another party or an increased bid. Whether either will be a knockout or if only one comes whether there will be room for an increased bid.My view is that this share is massively undervalued and going forward I think there will be plenty of ways that margins can be increased as they currently are very small indeed.Curry's seem over the last few years have been just reducing costs rather than expanding.Their shops are understaffed and it is not pleasant to shop there.This could be changed very quickly indeed
In the hope of buying back tomorrow ?
Will be interesting to see who wants to get in before the Friday close?
Not moved much today, but there was still huge amount of shares traded.
I think it will be the same tommorow
Than we will see what the weekend might bring as takeover bids are usually done over the weekend
IMO
GLA
Over £6millions traded off book
See today's two largest trades at 11:33:56 gmt and 11:33:57 gmt
2 x 4,573,000 traded at 68.45p
https://www.londonstockexchange.com/stock/CURY/currys-plc/trade-recap
This price wil be supported in anticipation of a higher Elliot offer and when it comes it wil be 80p+ - even if it does not come JD. are engaged and will still keep th price up until resolved.
Of bpth walk away, then up to the BoD to prove their worth but 46p is the base and I will be rebuying any trims made on the way up.
I expect a higher offer to arrive. Who knows if or how high or when?
Trim & readd - it is what fund managers do.
I think for anyone invested below the 60s will be fine. All depends what currys want and what others are willing to pay.
Simples .... You get the agreed price per share, either in cash or in a mixture of cash and shares in the new company. It will be a mandatory arrangement.
Not invested here am not convinced that the next offer will be accepted to buy in at this price, but for anyone who bought below this level could be laughing
18th March deadline to offer or walk away.
The shares were dirt cheap and sold for a lot of money. Just shows how undervalued a lot of UK stocks are.
Just one more on JD...
https://uk.finance.yahoo.com/news/analysis-currys-buyout-chinas-jd-111920300.html
Mike Ashley just increased his holding by 4.5% to 11.17%. Suggests confidence (at least to me) that it's headed North. He previously owned a large stake.
Seems to be consolidating ahead of another move North.
Someone give Sky a call as I am sure they have all the latest leaked information about the bid and timing.