The Very Group is planning a strategic review involving Barclays, JP Morgan, and Morgan Stanley, potentially leading to a significant sale.
- The potential sale could mark the end of the Barclay family’s ownership of this ecommerce firm, with expectations of a £2.5bn valuation.
- Investment banks are close to being appointed to start an auction process for The Very Group, involving either a full or partial sale.
- Potential bidders are likely interested due to Very’s technology-focused financial services, despite reduced valuation compared to £4bn.
- Carlyle’s increased control is a possibility, following debt maturity extensions, amidst leadership changes with Nadhim Zahawi as chairman.
The Very Group is on the brink of initiating a strategic review, for which it plans to enlist the expertise of Barclays, JP Morgan, and Morgan Stanley. This development is significant as it may lead to a substantial sale of the company, possibly indicating the end of the Barclay family’s extensive ownership.
According to sources familiar with the matter, these investment banks are expected to be officially appointed soon and are set to conduct a comprehensive auction of The Very Group. The auction could either involve a full sale or be partial, dependent on the developments during the strategic review.
Insiders suggest that the valuation for The Very Group might range around £2.5 billion, a figure noticeably lower than its previous valuation of £4 billion. This decreased valuation may be due to various market conditions and internal company dynamics.
Despite the lowered valuation, The Very Group is expected to attract bidders, primarily because of its advanced technology-focused financial services division, which complements its primary retail operations. This aspect of Very is particularly appealing to potential investors looking to leverage technological advancements in ecommerce.
It has also been noted that Carlyle Group could increase its influence over The Very Group. Earlier this year, Carlyle agreed to extend the maturity date of a portion of the group’s debt, which could position them strategically for greater control. The leadership change, with former Chancellor Nadhim Zahawi assuming the chairman role this May, replacing Aidan Barclay, adds a new dimension to the company’s strategic restructuring.
The strategic review and potential sale represent pivotal moments for The Very Group in navigating ownership and valuation challenges.
