Elliott confirms bid approach for UK retailer Currys

(Sharecast News) - US private equity firm Elliott Advisors on Monday confirmed it was considering a possible cash offer for struggling British electrical retailer Currys. Elliott, which bought the UK bookstore chain Waterstones in 2018, said in a statement there was "no certainty that an offer will be made for Currys" or the terms on which any bid might be made.

Currys on Sunday rejected Elliott's approach, saying its £700m proposal "significantly undervalued" the chain.

Elliott has until March 16 to make a firm bid.

Last month Currys lifted full-year profit forecasts despite reporting a drop in sales as consumers cut back on discretionary spending amid high inflation and stagnant wage growth.

In an update for the 10 weeks to 6 January, the retailer said group sales declined by 4%, with those in the UK and Ireland down 3%, while the international segment saw a 6% fall. The Nordics and Greece fell 6% and 4%, respectively.

Peak like-for-like revenue in the UK and Ireland declined 3%. Currys said "robust" profits were delivered through stable gross margin and continued cost savings. Sales were strong in mobile, but this was offset by weaker trends in TV and computing.

The company now expects adjusted pre-tax profit for the year of between £105m - £115m, above consensus expectations of £104m.

Reporting by Frank Prenesti for Sharecast.com