New York-based Apollo Global Management mulls buyout of Marks & Spencer
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.
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 PM 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.
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