JD.com eyes Currys takeover, shares surge 34%

Currys (LSE: CURY) shares rose by 34% on Monday morning to 63.23 pence as JD.com expressed interest in potentially acquiring the consumer electronics retailer. The FTSE 250 company’s market capitalisation reached £708.7 million.

Responding to media reports, JD.com confirmed it is exploring a takeover of Currys. Early talks were reported by The Telegraph, but JD.com clarified that its interest doesn’t guarantee a formal bid.

Currys recently turned down a takeover proposal from US private equity firm Elliott Investment Management. The bid, valued at approximately £702.8 million or 62 pence per share, was deemed insufficient by Currys, stating it “significantly undervalued the company and its future prospects.”

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Elliott, already present in the UK retail sector through Waterstones ownership, has until March 16 to declare its intent for a potential offer. JD.com faces a March 18 deadline.

For a successful deal, an offer of around £800 million may be necessary. Sky News reported a major Currys shareholder advocating for a minimum bid of 75p per share.