June 29, 2022

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Ted Baker puts itself up for sales after takeover interest

2 min read

A “for sale” sign has been hoisted by Ted Baker’s board after the fashion brand received a sweetened takeover proposal from a US private equity firm and rival bid interest.

Ted Baker confirmed last month that it had rejected two takeover approaches from Sycamore Partners, which would have valued the business at £254 million. Since the buyout firm’s last approach at 137½p a share, Ted Baker said it had received a third proposal, as well as “other unsolicited third-party bid interest in relation to the company”.

The company said: “In view of the interest expressed by potential offerors, and having consulted its major shareholders, the board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the board considers attractive relative to the standalone prospects of Ted Baker as a listed company.”

Shares in Ted Baker rose by 15.19p, or 11.85 per cent, to 143.39p in morning trading, valuing the company at £248 million.

It is not clear at this stage whether it has received one or more other expressions of interest but City sources said that Sycamore’s approach had sent a signal that there could be an opportunity for a leveraged buyout of another undervalued British asset.

A formal sales process means that the board can conduct an auction in private, without the restrictions of the Takeover Panel’s typical 28-day timetable. Sycamore’s present “put up or shut up” bid deadline of 5pm on April 15 will fall away if it participates in the formal process. A source said that Sycamore was a “serious” bidder.

Ted Baker said that its advisers at Evercore and Blackdown Partners “intend to conduct a targeted process, focused on those parties who understand and value the full potential of this unique brand”. Only bidders that proceed to a second phase of the sale process and agree to signing a non-disclosure agreement will be given non-public commercial information about the company’s…

Business Matters

2022-04-04 07:15:12

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