A £1.4billion bid for Halfords has been dismissed, according to reports this morning.
Redde Northgate, the van rental and accident repairs group, ditched its proposed zero-premium merger after Halfords’ board deemed that the offer would have undervalued the company, which was once a mainstay on the mid-cap FTSE 250 share index.
That may not be the end of a potential deal, though.
The Sunday Telegraph quoted a source as saying: “There were discussions about what an integration of the two businesses might look like, but there were questions over the valuations of both companies.
“Both share prices weren’t doing fantastically well at the time, so there is nothing live at the moment. However, it could come back.”
Halfords, founded in 1892, employs about 12,000 people, has nearly 400 stores, 650 or so garages and brought in turnover of £1.6billion last year. It is one of the most recognisable brands on the high street and in retail parks.
In 2021, Halfords’ shares reached 434¾p as investors tried to capitalise on a boom in demand for bikes during the pandemic. Its stock are now changing hands for 234p, albeit up by nearly 9 per cent so far this year.
Halfords previously was owned Boots, by the pharmacy chain, before it was taken over by CVC, the private equity firm, 20 years ago.
FTSE 100
The UK's flagship share index, the FTSE100, was up 36-points at 7,447 shortly after opening this morning, following on from Friday's 93-point gain.
Meanwhile, Brent crude futures were up 0.93% at $81.36 a barrel this morning.
Companies reporting today
- Big Yellow Group: Half Year Results
- Compass Group: Full Year Results
- Diploma: Full Year Results
- Polar Capital Holdings: Half Year Results
- Sirius Real Estate: Half Year Results