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Permira makes £940m approach for UK retailer WH Smith

Permira has made a £940m approach to acquire publicly listed retailer WH Smith. No formal offer has been made but both parties are currently in negotiations to secure a deal.

Permira is pitching its offer at 375 pence per share, a 44 per cent premium to the WH Smith's 259.75 pence share price at the close of trading on Friday.

Permira is working with a management team that includes two former WH Smiths executives, Simon Burke, the former chief executive of Hamleys, and Keith Hammill, the chairman of Moss Bros, according to the Financial Times.

Permira's interest in WH Smith marks the latest of a number of its forays into retail. The firm successfully exited its investment in Homebase DIY last year and subsequently attempted to acquire UK retailer Debenhams, but was outbid by a rival consortium. Permira also joined forces with Apax Partners to acquire a 30 per cent stake in fashion retailer New Look in a £700m public to private takeover earlier this year.

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