Ted Baker to be taken over by Authentic Brands in £211m deal
By Michele Maatouk
Date: Tuesday 16 Aug 2022
(Sharecast News) - Fashion brand Ted Baker said on Tuesday that it has agreed to be taken over by Reebok owner Authentic Brands Group in a £211m deal.
Under the terms of the transaction, Ted Baker shareholders will receive 110p per share in cash. This is a premium of around 18.2% to the closing share price on Monday and 11.4% to the share price on 17 March, which was the last business day before the offer period began.
Helena Feltham, interim chair of Ted Baker, said: "The Ted Baker board believes the offer, which is supported by Ted Baker shareholders with a majority of shares, represents a fair value for shareholders and balances the company's growth prospects with the risks of the uncertain economic environment in which the business is operating.
"The Ted Baker Board believes that ABG will be a strong and supportive owner of the business. We are confident that with ABG's experience, reach and investment, the Ted Baker brand will be capable of achieving its long-term global potential."
Jamie Salter, founder, chairman and chief executive of ABG, said: "Ted Baker is a highly regarded, uniquely British brand whose strong fashion credibility resonates with consumers around the world.
"We are excited to build on the brand's global foundation through a business model focused on licensing, wholesale, retail, digital and strategic marketing partnerships. Under ABG's ownership, we believe that Ted Baker is poised for continued growth and success."
At 0840 BST, the shares were up 17% at 108.60p.
Victoria Scholar, head of investment at Interactive Investor, said: "Ted Baker has been very open about its ambitions for a sale since April with today's update a welcome development for investors, representing a more than 18% premium to the previous close price.
"The question now is whether any counter bids will come to the table or whether Ted Baker will stick with this generous offer. Shares in Ted Baker have surged more than 17% this morning, trading just shy of the Authentic Brands' offer price, suggesting that the market believes, the deal will go through. The stock has had a rough ride before today's bounce, shedding more than 40% since the peak in April."
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