Ted Baker Rejects Sycamore’s Takeover Proposal

British fashion brand, Ted Baker, has rejected the unsolicited and non-binding takeover offer it received from Sycamore Partners as it significantly undervalued its business.

This marks the second time the retailer has turned down Sycamore’s offer. The private equity firm had raised its offer to 137.5 pence per share, valuing the company at £253.8 million ($333.65 million) after Ted Baker rejected its initial bid that offered 130 pence per share.

Ted Baker noted that the offer failed to “compensate shareholders for the significant upside that can be delivered by Ted Baker as a listed company.”

The latest offer valued the company’s stock 39.2% over its closing price on March 17, which is when Sycamore first made its proposal, Reuters reported.

While there is no certainty that a third offer will be made, Sycamore has until April 15 to close the deal.

Ted Baker’s stock value has declined by more than 94% over the course of the last five years. The company is currently in the middle of a three-year turnaround plan, focusing on boosting its online presence and rebuilding its tarnished image that has come as a result of waning profits and accounting issues.

Sycamore’s interest in Ted Baker comes at a time when British firms have reportedly seen their valuations plummet due to uncertainties in the market arising from Britain’s exit from the European Union.

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Originally published at https://retailbum.com on March 29, 2022.