Ted Baker: US private equity firm Sycamore will join formal sales process for fashion chain
Ted Baker has given confirmation that New York-based suitor Sycamore will take part in a formal sales process.
The retailer had previously rejected a number of bids from the US private equity firm, claiming their proposals had significantly undervalued the high street fashion chain.
The announcement does not mean that Sycamore will certainly throw its hat in the ring.
“There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made,” Ted Baker said on Wednesday morning.
Sycamore had previously been facing down a deadline (15 April) to announce it had “either a firm intention to make an offer […] or that it does not intend to make an offer,” in line with City rules.
Earlier this month, Ted Baker said it was kicking off a formal sales process after Sycamore made a third bid for the retailer.
The retailer received an improved proposal from Sycamore, in addition to another unsolicited third party bid.
The UK high-street retailer previously turned down two takeover proposals from the New York-based Sycamore, claiming a prior £250m bid “significantly undervalued” the firm.
“In view of the interest expressed by potential offerors, and having consulted its major shareholders, the board has decided to conduct an orderly process to establish whether there is a bidder prepared to offer a value that the board considers attractive relative to the standalone prospects of Ted Baker as a listed company,” a statement read.