2nd Apr 2024 11:51
(Alliance News) - Shares in Superdry PLC tumbled on Tuesday as hopes for a rescue bid faded.
After the market close last Thursday, Superdry said a takeover offer from Chief Executive Officer Julian Dunkerton was unlikely, while any rights issue would be at a material discount to the current share price.
Shares in Superdry slumped 51% to 14.06 pence in London on Tuesday. They have fallen 87% in the last 12 months.
On Thursday, Superdry said "a takeover offer from Julian Dunkerton for the company is unlikely to deliver an outcome for shareholders, or stakeholders more broadly, that the transaction committee and Julian Dunkerton are confident can be executed in the context of the company's ongoing work on its turnaround plan and material cost saving options."
"However, Julian Dunkerton remains fully committed to the company over the long-term and is in discussions with the company in respect of alternative structures, including a possible equity raise fully underwritten by Julian Dunkerton, which would provide additional liquidity headroom for the company's turnaround plan," it continued.
The company added it is expected that any equity raise would be at a very material discount to the current share price, and would be conditional on a delisting of the company.
"Investors finally had a chance to price in a barrage of bad news from Superdry which was released after the market close last Thursday," said Russ Mould, investment director at AJ Bell.
"Julian Dunkerton has withdrawn his attempt to take the troubled retailer private which means Superdry now faces the prospect of having to conduct a heavily discounted fundraising to stay alive, conditional on delisting the group from the stock market."
"Investors now appear to be dumping the stock to get back anything they can, even if it means crystalising a loss. In the absence of someone else throwing their hat in the ring and trying to buy the business, we can probably wave goodbye to Superdry as a listed entity," Mould added.
By Jeremy Cutler, Alliance News reporter
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