The owner of Waterstones and Barnes & Noble is reportedly preparing to list the booksellers on the stock market.
Elliott Investment Management, the hedge fund that owns the most popular bookstores in the US and the UK, has spoken to potential advisers about an initial public offering (IPO), the Financial Times reported.
The multibillion-pound group is thought to prefer London over New York for the listing, which could be a welcome boost to the UK stock market.
While initial talks are under way, no final decisions have been made and the plans could change.
The company’s financial year ends in April, which makes an IPO unlikely until after the summer at the earliest, the FT reported, citing unnamed sources close to the matter. However, it is believed that Elliott could appoint investment bankers early next year.
Elliott, Barnes & Noble and Waterstones were approached for comment.
Barnes & Noble and Waterstones are the two biggest booksellers in the US and the UK, respectively. Together they have more than 600 shops in the US, and more than 300 in the UK.
Much of the success has been driven by James Daunt, the chief executive of the two booksellers and the owner of his eponymous independent book chain in the UK. He has led Waterstones since 2011, during which time the company has stood its ground against Amazon and snapped up rivals such as Foyles, Hatchards and Blackwells.
Daunt told the BBC this month that an IPO in either New York or London felt like an “inevitability”, as private owners typically aim to sell businesses on.
He said: “It feels like an inevitability and probably better than being flipped to the next private equity person.”
Elliott acquired Waterstones in 2018 for an undisclosed sum from its previous owner, the Russian billionaire Alexander Mamut. The fund then bought Barnes & Noble in 2019 for $683m (£510m).
Elliott, which is based in New York, has a reputation for its aggressive shareholder activism, going into battle against some of the world’s biggest businesses. It has built up its presence on the UK high street, including through its stake in the food chain Wasabi.
Last year, it made a bid to buy the electronics retailer Currys, although it ultimately failed. It has also exerted pressure on the board of BP, which on Wednesday night ousted its chief executive, Murray Auchincloss, less than two years into his role.
An IPO would be welcome news for the UK stock market, which has struggled to attract big new companies in recent years and has seen a number of businesses move their listings to New York or return to private ownership.
