Currys has rejected a second takeover approach from US firm Elliott, saying the offer “significantly undervalued” the electronics chain.
Elliott valued the retailer at around £757m, up from its initial £700m valuation earlier this month.
The US company is up against Chinese rival JD.com which has also expressed an interest in buying the British firm
Category Archives: Financial
Whirlpool sells 24% of Indian subsidiary
Whirlpool corporation is selling a 24% stake in its subsidiary Whirlpool of India to various investors. The goal is to raise $451 million. The operation was officially announced last November and is part of the debt and invested capital reduction strategy which also led to the disengagement from EuropeWhirlpool of India sees its leadership position on the Indian white goods market undermined by competition, especially Korean competition, and closed its financial statements in December with a loss for the sixth consecutive quarter. The Indian stock market, on the other hand, is at historically very high levels. To be precise, Whirlpool Corp has put 19 million shares on the market and hopes to place another 11 million while remaining the controlling shareholder.
SEB ACQUISITION PROCESS OF THE SOFILAC GROUP AND ITS EMBLEMATIC BRANDS LACANCHE AND CHARVET
Groupe SEB wishes to strengthen its expertise in the high-end cooking segment and thus continue its growth in the professional and semi-professional markets.
Sofilac is a French family group majority owned by members of the Augagneur family. It designs, manufactures, and distributes high-end semi-professional (Lacanche brand) and professional (notably with the Charvet brand) cooking equipment. Lacanche, Entreprise du Patrimoine Vivant, and Charvet offer exceptional, timeless and durable products based on unique know-how. With its iconic brands, the Sofilac Group meets the requirements of professional chefs and cooking enthusiasts to allow them to best express their talent.
This acquisition would allow Groupe SEB to strengthen its presence in the cooking segment by completing its network made up of its premium brands (Krampouz, Forge Adour, WMF, All-Clad, and Lagostina). It would thereby support Groupe SEB’s ambition to become a key player in the profitable and growing professional and semi-professional equipment markets, with complementary brands, products and distribution channels.Manufactured for several centuries in a Burgundy village of the same name, whose history is closely associated with metalwork, Lacanche stoves and cookers perpetuate the French culinary tradition. A wide variety of options and finishes make each “Gastronome Piano” a unique object.
Faithful to its original values, this family business combines passion, innovation and know-how. Recognized as a “Living Heritage Company”, it pays particular attention to the nobility of the materials and components, as well as the quality of the enameled color adornments of its equipment.
Russian manufacturers of household appliances asked for help
Russian manufacturers of household appliances are talking about record revenue, but they note problems with profits, which is due to increased production and advertising costs, competition from Chinese and Turkish companies, as well as increased commissions from marketplaces. Kommersant writes about this with reference to market participants.
A representative of the Redmond household appliance brand noted that manufacturers from friendly countries are increasing their influence, so the industry would benefit from government assistance. In particular, he asked for a ban on parallel imports of goods from vendors who left the Russian market.
Founder of the Smart Solution group (Jacky’s brand) Huseyn Imanov pointed out that his company’s revenue had doubled to 3.4 billion rubles. He expects growth of another 30 percent this year.
At the same time, on the issue of profit, the businessman believes that a number of manufacturers, especially small ones, will start to lose revenue. In his opinion, the high demand for placement on marketplaces leads to an increase in advertising prices on sites, which directly affects profits.
A representative of Weissgauf said that the brand’s revenue doubled in 2023, but expressed confidence that it would decrease in 2024 due to the increase in the cost of goods. The ruble exchange rate, inflation and other circumstances force Russian manufacturers to raise prices for goods, which is why they lose out to suppliers from China and Turkey.
He called the sanctions pressure a significant problem, which forces the use of gasket companies to organize custom production, which hits profits.
In turn, the commercial director Holodilnik.ru Alexey Pogudalov believes that a large localization of production in Russia could correct the situation. The expert stressed that the demand in the domestic market makes it possible to take such a step.
LG Financial Results
LG announced its financial results for the year 2023, disclosing a consolidated revenue of KRW 84.2 trillion and an operating profit of KRW 3.55 trillion. This marks the third consecutive year of achieving record-breaking annual revenue. The operating profit is also solid, approaching levels seen during the prior period of pent-up demand.
Despite challenging external factors such as an economic slowdown and reduced demand, LG’s core business of home appliances and the burgeoning vehicle components business have demonstrated remarkable resilience, maintaining continuous growth for eight consecutive years. The combined revenue of these businesses exceeded KRW 40 trillion last year, a substantial increase from KRW 18 trillion in 2015. Over the same period, the proportion of these two businesses in the total revenue has risen from 32.5 percent to 47.8 percent.
The performance is attributable to LG’s strategic efforts to enhance its business portfolio. The company successfully expanded its B2B business by identifying market turning points early on and integrated new business models, including subscription services, into existing frameworks. Furthermore, LG’s innovative content and service business model, leveraging its extensive user base of hundreds of millions of products globally, has also contributed to securing robust profitability.LG Home Appliance & Air Solution Company achieved an annual revenue of KRW 30.14 trillion, marking eight consecutive years of growth and ushering in the era of KRW 30 trillion. Introducing new business models including subscription services and expanding the B2B share in areas such as HVAC, components and built-in solutions contributed to this growth. The operating profit recorded an increase of over 76 percent compared to the previous year, reaching KRW 2.08 trillion.
In the coming year, the Company will accelerate a shift in its business model towards future readiness, including Direct-to-Consumer initiatives. It aims to expand the deployment of home appliance operating systems and extend subscription services to international markets. Additionally, there will be a swift progression in building smart home solutions that reflect the value of “Zero Labor Home.” In terms of products, the Company will seek to maintain its strategic approach of solidifying the premium leadership of key products, such as washing machines and refrigerators, while swiftly expanding region-specific lineups. To sustain continuous growth in the B2B sector, especially in areas like HVAC, the Company plans to strengthen its capabilities by establishing a complete, local business operation that encompasses product development, production and sales, with a focus on the evident electrification trends in regions such as North America and Europe.
Currys: JD.com considers takeover bid
Currys could soon find itself the centre of a bidding war as Chinese online shopping giant JD.com considers making a takeover offer and Waterstones owner Elliott reviews its bid.
The Chinese ecommerce giant said on Monday that “it is in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys”. Elliott is understood to considering making a new cash bid for the electricals retailer after its initial £700m offer was rejected on Friday.
Frasers ups stake in AO
Frasers Group has increased its stake in electricals retailer AO World as it launches an £80m share repurchase programme.
The retail group said on Monday that it intends to buy back up to 10 million shares, worth 2% of the company, over the next 11 weeks to 28 April with support from investment banking group Deutsche Numis
Frasers continues its acquisition spree with the group increasing its holding in AO from 23.07% to 24.7% on Tuesday.
The retail empire first snapped up a 19% stake, worth £75m, in the Bolton-based online retailer back in June.
Frasers also holds shares in AO rival Currys, which it said was part of a “strategic investment” as it looks to increase its “foothold in the electricals industry”
Ultimate products revenue down
Ultimate Products has said Brits are buying fewer airfryers than before, leading revenues to drop four per cent in the second half of the year.
Ultimate Products, which owns Britain’s oldest houseware brand Salter founded in 1760, reported revenues of £84m, down from £87.6m in the first half of 2023, which it said was due to waning sales of the machinesThe group, which sells Russell Hobbs cookware and laundry products under licence as well as owning the Beldray brands, floated on the London Stock Exchange in an IPO worth more than £100m in 2017.
AEG and Sirius
Sirius Buying Group has announced that Electrolux Group, including its premium appliance brand AEG, has become its latest Approved Supplier
Haier recognized as the No.1 Global Major Appliances
Haier has set an industry benchmark by earning the prestigious title of Global No. 1 major appliances for the 15th consecutive year by Euromonitor International. The brand has achieved this milestone with the help of its remarkable sales of refrigerators, washing machines, freezers, and electric wine coolers. Haier has continued with its mission to establish itself as a world-leading ecosystem brand,According to the data released by Euromonitor in 2023, Haier is the:
No.1 brand of refrigeration appliances in the world in volume sales for 16 consecutive years No.1 brand of home laundry appliances in the world in volume sales for 15 consecutive years No.1 brand of wine coolers in the world in volume sales for 14 consecutive years No.1 brand of freezers in the world in volume sales for 13 consecutive years
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