26th Feb 2019 17:57
LONDON (Alliance News) - Laura Ashley Holdings PLC on Tuesday expressed its disappointment at an offer received by Flacks Group LLC, which it believed to "substantially undervalue" the company.
On Monday, Flacks confirmed it was in the preliminary stages of evaluating a potential offer for the home furnishing and fashion retailer.
If made, any offer is expected to be in cash for a maximum of 2.748 pence per Laura Ashley share, valuing the company at GBP20 million. This price is considered by Flacks to be final and will not be increased or decreased.
On Tuesday, Laura Ashley said it was disappointed with Flacks approach, including its decision not to engage with the board before the announcement.
"The board, having considered the offer with its advisers, believes that the terms of the offer substantially undervalue the group and encourages all shareholders to take no action," the retailer said.
Chair Andrew Khoo said he holds a "long term view" of the company.
"Opportunistic and unsolicited offers that are speculative in nature, and playing to a short term market that creates unnecessary volatility to the share price, are not welcome," Khoo added.
Laura Ashley shares closed up 6.0% at 3.55 pence each.
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