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LONDON – Super dry Shares rose more than 100% on Friday as the struggling British fashion retailer confirmed that co-founder and CEO Julian Dunkerton was considering going private.
The shares peaked at 48.55 pence (62 cents) per share shortly before 11 a.m. London time and were last trading at around 46 pence per share.
A recent drop in sales and a falling share price have led to speculation that Superdry, which listed on the London Stock Exchange in March 2010, could become a takeover target. The rumors intensified this week when it was revealed that Norwegian hedge fund First Seagull had built a 5.3% stake in the company, making it the second-largest shareholder behind Dunkerton, according to LSEG data.
The company confirmed in a market update on Friday that Dunkerton had requested “permission to begin examining the possibility of making an offer for the company” and to begin discussions with potential backers, which the company has accepted.
“Julian Dunkerton has since confirmed to the Transactions Committee that he is in discussions with potential financing partners (“Potential Sponsors”) to explore options in relation to the Company, which could include a possible cash offer for the entire issued securities and share capital to be issued of the company he doesn’t already own,” Superdry said.
“These discussions are at a preliminary stage and no decisions have been made yet.”
Dunkerton has until March 1 to make an offer or abandon it under U.K. takeover board rules.
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The performance of Superdry’s share price since listing in March 2010.
Dunkerton co-founded Superdry in 2003 as a market stall in Cheltenham, England, before expanding into one of the largest high street fashion retailers in the UK.
Superdry’s share price peaked at over £20 per share in January 2018, shortly before Dunkerton left the company due to a disagreement over the direction of the business.
After a boardroom coup, he returned to the top the following year, but the company’s share price remained generally in a downward trend as the UK’s cost of living crisis hit the retailer. The stock closed trading on Thursday at just over 21 pence per share.
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2024-02-02 17:26:51
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