Terry Leahy Supports Selkirk Investment Company Targeting Subsidiary Acquisitions

Sir Terry Leahy endorses the newly established investment firm Selkirk, which is launching on London’s junior market with a goal of acquiring undervalued subsidiaries. The company aims to raise £7.5 million for this initiative, attracting other notable investors such as Ed Woodward and Oliver Hemsley. Leveraging the conglomerate discount, Selkirk is set to explore potential acquisition opportunities immediately upon its IPO.

Sir Terry Leahy, the former chief executive of Tesco, is a prominent backer of Selkirk, an investment company poised to debut on London’s junior market this week. The firm aims to acquire undervalued subsidiaries of publicly listed companies. This upcoming initial public offering (IPO) will see Selkirk raise £7.5 million, with Leahy anticipated to hold a roughly 10 percent stake in the company. The roster of investors includes notable figures such as Ed Woodward, the ex-CEO of Manchester United, and Oliver Hemsley, the creator of City stockbroker Numis. The £7.5 million raised will be allocated to conduct due diligence on potential acquisitions, as Selkirk seeks to leverage the market phenomenon known as the “conglomerate discount,” whereby corporate assets may be undervalued when grouped together in larger entities.

The formation of Selkirk highlights a strategic movement in investment where experienced professionals aim to capitalize on the weaknesses of conglomerates. The concept of conglomerate discount arises when a larger corporation or group is valued less than the sum of its individual parts, leading to opportunities for targeted acquisitions of undervalued subsidiaries. Given the backing of influential figures in business and sports, Selkirk’s launch could attract significant attention in the investment community.

In summary, Selkirk is set to make its entrance into London’s junior market with significant backing from notable investors like Sir Terry Leahy. With an initial capital of £7.5 million, the company plans to identify and acquire undervalued assets, potentially revitalizing these subsidiaries and beneficially impacting the overall market dynamics. The strategic focus on harnessing the conglomerate discount positions Selkirk as a compelling entity within the investment landscape.

Original Source: www.thetimes.com