Superdry Shares Soar as Co-Founder Julian Dunkerton Considers Taking the Company Private
The British fashion retailer, Superdry, experienced a massive surge in its stock price, rising over 100% on Friday. This came about as co-founder and CEO, Julian Dunkerton, revealed his consideration of taking the company private. The stock hit a peak of 48.55 pence per share before settling at around 46p per share just before 11 a.m. London time.
There has been speculation surrounding Superdry’s potential takeover due to a recent decline in sales and falling share prices. This speculation intensified when it was revealed that Norwegian hedge fund First Seagull had acquired a 5.3% stake in the company, making it the second-largest shareholder behind Dunkerton, according to LSEG data.
The company confirmed Dunkerton’s request to explore the possibility of making an offer for the company and to initiate talks with potential financial supporters. Superdry stated, “Julian Dunkerton has since confirmed to the Transaction Committee that he is engaged in discussions with potential financing partners (‘Potential Sponsors’) for the purposes of considering options in respect of the Company, which may include a possible cash offer for the entire issued and to be issued share capital of the Company not already owned by him. These discussions are at a preliminary stage and no decisions have been made.”
The UK Takeover Panel’s regulations stipulate that Dunkerton has until March 1 to submit an offer or to walk away from the deal.
Superdry has a remarkable history, starting as a market stall in Cheltenham, England in 2003, before growing to become one of the UK’s largest high street fashion retailers. The company’s share price reached above £20 per share in January 2018, just before Dunkerton’s departure from the business due to a dispute over its commercial direction. He later returned to the helm after a boardroom coup the next year.
Unfortunately, the company’s share price has been on a downward trend, closing Thursday’s trade at just over 21 pence per share, partly due to the impact of the UK’s cost-of-living crisis on the retailer.
Should Dunkerton’s efforts result in a successful bid to take the company private, it will undoubtedly mark a significant turning point in the Superdry story. The future of the company now rests on the outcome of Dunkerton’s considerations. Stay tuned as we await further developments.
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