Superdry CEO Julian Dunkerton is considering making a takeover bid to take the company private, according to recent reports. This news has caused a significant surge in Superdry’s share price, more than doubling it and resulting in a market valuation of £46 million. Although this valuation is much higher than the previous day’s value of just over £20 million, it is still significantly lower than the company’s value of over a billion pounds in 2018.
To explore his options, Dunkerton has informed an independent Transaction Committee that he is in talks with potential financing partners. These options may include a cash offer for all outstanding shares in the company that he does not already own. It should be noted that these discussions are still in their preliminary stage and no final decisions have been made.
In addition to this potential takeover bid, Superdry has announced that it is working with advisors to investigate various cost-saving measures. These initiatives aim to build upon the company’s past success in reducing costs and position it for long-term success. However, it is uncertain whether any of these options will be pursued.
According to London Stock Exchange takeover rules, Dunkerton must declare his intention to make an offer for Superdry or announce that he does not plan to make an offer by 1 March. This news of a possible takeover bid has the potential to attract other interested buyers. Dunkerton holds a 26% stake in Superdry, and co-founder James Holder owns over 7%. Any potential buyer would need their agreement to proceed. Furthermore, Norwegian investment fund First Seagull recently acquired a 5.3% stake in Superdry, further fueling rumors of a takeover.
Speculations about a potential takeover gained traction after it was reported that First Seagull viewed Superdry as an attractive candidate for a bid due to its profit warnings and weak financial results. Reports also suggest that Authentic Brands Group and Sycamore Partners, both active in acquisitions within the fashion industry, have shown interest in Superdry as well.
The concrete interest in Superdry has led to an increase in the company’s share price. However, as of Friday morning, the shares were still trading at less than 22p each. An anonymous source believes that an offer is likely considering the current situation and the CEO’s expressed interest. Ultimately, the future of Superdry remains uncertain until the 1 March deadline, when Dunkerton must declare his firm intention to make an offer.
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