Investment firm Apollo Global Management is reportedly mulling a buyout of UK high street staple Marks & Spencer.
The New York based company considers the purchase a bargain and believes the joint venture between M&S and delivery company Ocado has been undervalued The Sunday Times first reported. It comes after Apollo Global Management bought a 50 per cent stake in the joint delivery service in 2019 for £750m.
Apollo unsuccessfully bid for Asda, which was acquired last year by private equity firm TDR and the Issa brothers for £6.8bn. The US alternative investments business subsequently held talks over joining the consortium bidding for Morrisons and also mulled an offer for Sainsbury’s this year.
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M&S has struggled in recent years with shares down 22.42 per cent over a five year period. However, the company has experienced a resurgence during lockdown and remains an iconic brand on British high streets.
It is unclear whether a recent rally in M&S shares, which have risen 24 per cent since the company forecast this month that underlying profits would be close to £500m this year, will have dampened Apollo’s interest.
Apollo Global Management gave no comment on the rumoured takeover when approached by City A.M. reporters.
Shares closed at £2.41 on Friday valuing M&S at £4.7bn and putting the grocery and fashion outlet within touching distance of a FTSE-100 spot. Stock is up a further 3.11 per cent today.
Source: City A.M.
Investment firm Apollo Global Management is reportedly mulling a buyout of UK high street staple Marks & Spencer.
The New York based company considers the purchase a bargain and believes the joint venture between M&S and delivery company Ocado has been undervalued The Sunday Times first reported. It comes after Apollo Global Management bought a 50 per cent stake in the joint delivery service in 2019 for £750m.
Apollo unsuccessfully bid for Asda, which was acquired last year by private equity firm TDR and the Issa brothers for £6.8bn. The US alternative investments business subsequently held talks over joining the consortium bidding for Morrisons and also mulled an offer for Sainsbury’s this year.
Free Webinar: Cashing in – Examining Private Debt Investments into 2022
- In the current market, what areas within private debt should get the attention?
- How has technology reshaped investor relationship management?
- How has LP’s attitude towards private debt changed due to the pandemic and how can this change be accommodated by GPs?
The new funding also reflects the growth of crypto custody startups, which provide storage and security services for blockchain-based assets used by large financial institutions.
New York-based Fireblocks, which offers similar custody services to Anchorage, is also in talks with investors to raise a new round of cash at a valuation of approximately $8bn.
Source: The Information
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