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London – Super Dry The troubled British fashion retailer’s stock price rose on Friday after its co-founder and CEO Julian Dunkerton confirmed he was considering taking the company private. It soared more than 100%.
The stock peaked at 48.55 pence (62 cents) per share just before 11am London time and was last trading around 46 pence per share.
There has been growing speculation that Superdry, which floated on the London Stock Exchange in March 2010, could be a takeover target after recent poor sales and a drop in its share price. Rumors intensified this week when it was revealed that Norwegian hedge fund First Segal had acquired a 5.3% stake in the company, making it its second-largest shareholder after Dunkerton, according to LSEG data.
In Friday’s market update, the company said Mr Dunkerton had asked for “permission to begin considering the possibility of making an offer to the company” and to begin negotiations with potential financial backers, which the company said it would accept. He admitted that he had accepted it.
“Mr Julian Dunkerton has since confirmed to the Trade Commission that he is in discussions with potential funding partners (“Potential Sponsors”) for the purpose of considering options for the Company. This may also include the possibility of a cash offer for all outstanding shares and shares. “The company’s share capital will be issued, but he does not own it yet,” Superdry said.
“These discussions are at a preliminary stage and no decisions have been made.”
Under UK Takeover Commission rules, Dunkerton has until March 1 to submit an offer or withdraw.
Super Dry stock price trends since its listing in March 2010.
Dunkerton co-founded Superdry in 2003 as a market stall in Cheltenham, England, and it has since expanded to become one of the UK’s largest high street fashion retailers.
Superdry’s share price peaked at over £20 per share in January 2018, just before Dunkerton pulled out of the business following disagreements over its commercial direction.
He returned to management the following year following a boardroom coup, but the company’s share price remains generally depressed as Britain’s cost-of-living crisis hits retailers. The stock closed Thursday at just over 21p per share.
