Superdry Share Price Dropped 13.7% on PUSU Deadline Extension

The Superdry PLC (LON: SDRY) share price dropped 13.7% on the company's potential acquisition deadline extension. The fashion retailer Superdry has acknowledged that Julian Dunkerton, the company's Chief Executive Officer, has been given the green light to investigate the potential for a cash acquisition offer for the remaining shares of Superdry. 

This exploration was preliminary, with Dunkerton actively engaging in discussions with Potential Sponsors to potentially back such a move. The context of this exploration is framed by the regulatory landscape of corporate acquisitions, specifically citing Rule 2.4(c) of the Takeover Code.

This rule necessitated Dunkerton to comply with a specific procedural requirement under Rule 2.6(a) of the same code. Specifically, Dunkerton was mandated to make a clear decision regarding his intentions towards Superdry by no later than 5:00 p.m. on March 1, 2024. 

He faced two options: formally announcing his commitment to launch an offer in line with Rule 2.7 of the Code or publicly declaring that he did not intend to make such an offer for Superdry. Superdry has not been idle amid these unfolding discussions about a possible offer. 

The company has been diligently working on its strategic turnaround initiatives, part of which involves a comprehensive review and implementation of substantial cost-saving measures. These initiatives are seen as pivotal components of any potential offer and are expected to influence the company's future financial and operational trajectory significantly.

Recognising the complexity and the critical nature of the ongoing discussions and the importance of the turnaround strategies being considered, Superdry sought and was granted an extension for the deadline initially set for Dunkerton’s decision. 

The Takeover Panel, adhering to Rule 2.6(c) of the Code, agreed to extend the deadline to 5:00 p.m. on March 29, 2024. This extension provides additional time for thorough consideration and negotiation, ensuring that any decision is in the company's and its stakeholders' best interest. 

By this new deadline, Dunkerton must make a definitive announcement regarding his intentions, following the stipulations outlined in Rule 2.7 of the Code. Should he decide against making an offer, such a decision will be formalised per Rule 2.8 of the Code. 

Superdry share price. 

The Superdry share price fell 13.71% to trade at 34.0p from Thursday’s closing price of 39.4p.