19th Feb 2024 08:33
(Alliance News) - Currys PLC shares jumped on Monday, with Chinese e-commerce firm JD.com Inc the latest to throw its hat in the ring for a possible takeover of the consumer electronics retailer.
Shares in the company surged 33% to 62.50 pence in London on Monday morning, giving it a market capitalisation of GBP708.7 million.
JD.com, noting press coverage, said it is mulling an acquisition of Currys. The Telegraph newspaper on Sunday reported JD.com has held early talks with Currys.
JD.com noted that there is no certainty that its interest will result in a bid.
On Sunday, Currys said it rejected a takeover tilt from US private equity firm Elliott Investment Management LP.
Currys said it received an unsolicited proposal worth around GBP702.8 million from Elliott, or 62 pence per share. The Currys market value topped that figure on Monday.
Currys said the Elliott bid "significantly undervalued the company and its future prospects".
Elliott already has a presence in the UK retail sector. It owns bookseller Waterstones. According to City rules, it has until March 16 to announce if it plans to make an offer for Currys.
JD.com has a deadline of March 18, meanwhile.
If either are to seal a deal, they may need an offer worth GBP800 million. Sky News reported that a major Currys shareholder wants a 75p-a-share bid "at a minimum".
JD.com shares closed 4.1% lower at HKD91.85 each on Monday in Hong Kong.
By Eric Cunha, Alliance News news editor
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