Sainsbury bid undervalued Home Retail Group

06 Jan, 16

Undervalued company and long-term prospects

Parent company of Homebase and Argos, the Home Retail Group has spoken out about the rejected Sainsbury’s bid, stating it undervalued the company and its long-term future.

The undisclosed sum, offered in November 2015, has been confirmed as a possible cash and share offer.

J.Sainsbury will have until 5pm on February 2, 2016 to make another offer for the Home Retail Group.

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A statement issued by Home Retail Group read: “In accordance with Rule 2.6(a) of the City Code on Takeovers and Mergers (the “Code”), Sainsbury’s will have until 5.00pm on 2 February 2016, being 28 days after today’s date (or such later time and / or date as may be agreed by the Takeover Panel in accordance with Rule 2.6(c) of the Code), to announce either a firm intention to make an offer for Home Retail Group in accordance with Rule 2.7 of the Code, or that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.”

It continued: “There can be no certainty that a firm offer will be made, nor as to the terms on which any firm offer might be made.” Home Retail Group is scheduled to release its latest trading statement on 14 January 2016.