Superdry PLC’s (LON: SDRY) shares surged by 64% following a report by The Times that a hedge fund has acquired a 5% stake, amidst increasing speculation about a potential takeover of the struggling retailer.
According to the report, a Norwegian alternative investment fund has purchased a 5.3% share in the Cheltenham-based company, as revealed in regulatory filings.
First Seagull is reportedly viewing Superdry as a prime target for a bid, especially after the retailer’s share price plummeted due to a series of profit warnings over the past year.
American private equity firm Sycamore Partners and Authentic Brands Group, the owner of brands like Ted Baker and Forever 21, are also believed to be considering Superdry as a potential acquisition, as per the report.
Sources cited by The Times estimate that Superdry’s value, if managed by a brand management company, could range between £400 million and £600 million, in contrast to its current market capitalization of around £34 million.
In early 2018, Superdry’s shares were close to £20 each, valuing the company at over £1.7 billion. However, the firm has faced challenges recently, with reports this week indicating potential cost-cutting measures, including possible store closures.
