By Scott Kanosky
Investing.com – Shares in Made.com Group PLC (LON 🙂 jumped nearly 24% Monday after the online furniture retailer announced that it has reduced the number of suitors interested in buying the company.
In a statement, MEED said it had invited “a select number of parties” to submit confirmed bids by the end of October, following due diligence procedures. The Company selected these proposals from an unspecified list of initial, non-binding indicative acquisition proposals.
The London-based e-commerce group did not provide details on the entities that submitted bids, but said the proposals provide a “range of different transaction structures”, including potential bids for “issued” and “scheduled” capital in the making.
The company first announced its intention to explore selling in late September after a decline in performance due to the deterioration caused by inflation in consumer spending on non-essential goods.
Made, which previously raised £90m from an initial public offering last year, has issued several profit warnings in 2022. The downturn has also made it struggle to secure the cash needed to keep the company afloat.
Meanwhile, shares are down about 95% over the last year’s period.
Maid reiterated that any potential buyer had been advised that it would require funding in the range of £45m to £70m to operate as a stand-alone public company over the next 18 months.
“Based on the Group’s working capital requirements, any firm offer will require interim funding to be executed at the time expected to be submitted by the company,” the company said.