Britain’s Ted Baker looks to sell itself after takeover interest

By Yadarisa Shabong and Muhammed Husain

(Reuters) – Ted Baker is open to promoting itself on the proper value after seeing a flurry of takeover curiosity, the British trend retailer mentioned on Monday within the wake of a sturdy rebound from the pandemic.

Ted Baker launched a proper sale course of after non-public fairness agency Sycamore improved its takeover proposal and one other third occasion confirmed curiosity in bidding for the corporate, sending its shares surging as a lot as 11% to 142.6 pence.

Takeover curiosity in British firms, starting from defence teams to supermarkets, is at its highest in years, because the pandemic and uncertainties linked to Brexit have slashed valuations.

“The Board has determined to conduct an orderly course of to determine whether or not there’s a bidder ready to supply a price that the Board considers engaging relative to the standalone prospects of Ted Baker as a listed firm,” it mentioned in a press release https://bit.ly/3uUTUp4.

The corporate, which has 560 shops and concessions, is in the midst of a three-year turnaround plan below chief government Rachel Osborne and has seen demand return from pandemic lows.

Final week, it rejected a second proposal from New York-based Sycamore that valued it at 253.8 million kilos ($332.86 million), saying it undervalued the group.

Ted Baker mentioned Sycamore had made a 3rd proposal, however did not disclose the phrases in its announcement on Monday.

It has not spoken with Sycamore as as to whether the non-public fairness agency needs to take part within the sale, Ted Baker mentioned.

Sycamore didn’t instantly reply to a Reuters’ request for remark.

The formal sale course of, which the UK’s takeover regulator has agreed to, permits talks with bidders to happen on a confidential foundation.

Ted Baker through the years has been working to regain buyers’ belief after former CEO Ray Kelvin left in 2019 following misconduct allegations. He has denied the allegations and nonetheless owns almost 12% of the corporate he based in 1988 in Glasgow, Scotland.

($1 = 0.7625 kilos)

(Reporting by Yadarisa Shabong and Muhammed Husain in Bengaluru; Enhancing by Amy Caren Daniel and Bernadette Baum)