A prominent Currys (LSE: CURY) shareholder has urged the company to divest its ID Mobile division, according to a report in The Sunday Times. Investment firm JO Hambro, holding a 4.5% stake in Currys, believes the consumer electronics retailer should sell off its mobile phone contract business, valued at around £350 million.
The Sunday Times revealed that JO Hambro, the eighth-largest shareholder in Currys, has written to investors outlining its stance. In the letter, Hambro expressed its preference for the sale of ID Mobile, stating that the “pressure will now be on the board to realise shareholder value” following the withdrawal of bids from Elliott Advisors and JD.com earlier this year.
Hambro’s letter highlighted that one factor contributing to the failed bids was certain investors’ firm stance on the “minimum acceptable value for this business”, underscoring the perceived value of the ID Mobile division. The investment firm has increased its holding in Currys since the suitors’ departure.
Currys’ share price rose 0.9% in early trading on Monday, with the stock up 25% year-to-date.
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