(Alliance News) - Ted Baker PLC has received interest from across the Atlantic, as a New York private equity firm confirmed it is considering a takeover offer.
Sycamore Partners Management LP on Friday confirmed it is in "the early stages" of a possible cash offer for the London-based clothing retailer.
Shares in Ted Baker surged 20% to 118.04 pence each in London on Friday morning, having closed up 10% on Thursday.
Sycamore's confirmation came in response to an article by Sky News early on Friday morning that first reported the approach.
"[Sycamore] was also reported to be among the suitors circling Boots, Britain's biggest chain of high street chemists, although City insiders have expressed scepticism about Sycamore's eventual involvement in the auction," Sky's Mark Kleinman noted.
https://news.sky.com/story/american-private-equity-firm-sycamore-has-designs-on-fashion-chain-ted-baker-12568677
Following the confirmation, Sycamore noted it how has until April 15 to announce a firm intention to make an offer for Ted Baker or to withdraw, the so-called regulatory put-up-or-shut-up deadline of 28 days. It said there is no certainty that any offer will be made, and no direct approach has been made yet to Ted Baker's board.
It is being advised by Numis Corp PLC, the London-based stockbroker and investment bank.
Noting Sycamore's release, Ted Baker responded:
"Ted Baker continues to make good progress with its transformation and the company is emerging from Covid as a stronger and more financially sustainable business.
"The board is confident in the company's independent prospects and would evaluate any offer for the company against the strong shareholder value creation that it believes can be delivered as a standalone company."
It urged its shareholders to take no action at this time.
Ted Baker reported in late February that sales in its final quarter ended January 29 were up 35% year-on-year despite headwinds from Omicron. The retailer had edged towards financial recovery from the pandemic in its first half ended on August 14, as its pretax loss narrowed to GBP25.3 million from a GBP86.4 million a year before.
Marc Dench, formerly of fellow clothing retailer Joules PLC, joined Ted Baker as the new chief financial officer earlier this month.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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