Flacks confirms possible Laura Ashley takeover bid

Miami investment firm Flacks Group said on Monday that it is in the preliminary stages of evaluating a possible takeover bid for womenswear and furnishings retailer Laura Ashley.

Flacks said that any takeover bid would be satisfied in cash and limited to a maximum cash payment per share of 2.748p, valuing the entire issued share capital of Laura Ashley at approximately £20m, a price that the investment company said was "final and will not be increased or decreased".

However, Flacks stressed that there was no certainty that any offer will be made for the retail chain.

Earlier on Monday, Laura Ashley chairman Andrew Khoo said: "If and when an approach is made, the Board will discharge its duties as always and assess it on its relative merits. I would however like to state for the record that as major shareholders of Laura Ashley, we have no intention of divesting our shareholding."

He added that he had "complete confidence" in Laura Ashley's ability to grow profitably and sustainably and said that the company's major shareholders remained committed and passionate about the "well-loved" brand.

The retailer issued a profit warning last week, telling investors that its full-year results had been impacted by "difficult" trading conditions and said that it had failed to turn a profit over the last six months of 2018 as sales dropped by 4.2%.

It is controlled by Malaysian investment holding company Malayan United Industries and currently operates 156 stores in the UK but has closed 40 locations since 2015.

Laura Ashley's shares were up 7.10% at 3.47p at 1651 GMT.