Frasers Group’s £13.6m offer for MySale becomes unconditional after retailer’s stake surpasses 50%
- Frasers Group already owns Sports Direct, Jack Wills and French Connection
- The Derbyshire-based firm now owns roughly 50.6% of MySale shares
- It often acquires financially-troubled firms at bargain-basement prices
Frasers Group’s MySale takeover offer has change into unconditional after the retailer secured a greater than 50 per cent stake in the corporate.
The style retailer, which is the parent company of Sports Direct, Jack Wills and French Connection, has been increase a stake within the e-commerce firm for the reason that summer as a part of measures to expand its international presence.
It became the most important shareholder within the Australian business, which sells excess stock it buys from apparel retailers in Europe, when it acquired a 28.7 per cent ‘strategic investment’ three months ago.
Purchase: Frasers Group, whose majority owner is Mike Ashley, has been increase a stake in MySale for the reason that summer as a part of measures to expand its international presence
A £13.6million takeover bid was then made by Frasers for the remaining shares it didn’t own, a proposal initially rebuffed by the MySale board for what it deemed to be undervaluing its prospects.
After receiving support from MySale’s co-founders, Jamie Jackson and his brother Carl Jackson, who resigned as chairman, the deal then became a compulsory offer.
Having confirmed buying further stock on Monday, Frasers said it now controls or has received valid acceptances for shares constituting 50.6 per cent of the corporate, meaning the buyout proposal has turned unconditional.
Should the Derbyshire-based group obtain no less than 90 per cent of the retailer’s shares before the mandatory bid expires in the beginning of next month, it has vowed to make a compulsory acquisition of the remaining equity.
The FTSE 100 business told investors on Tuesday that it ‘intends to proceed to accumulate additional MySale shares by the use of market or other purchases and in accordance with the Takeover Code.’
It added: ‘MySale shareholders who want to transfer their holdings of MySale shares to Frasers may achieve this either by the use of a market sale or by accepting the mandatory offer via the acceptance procedure outlined on this announcement.’
Frasers’ pursuit of the business has put its majority owner Mike Ashley against retail magnate Sir Philip Green, whose wife Tina owns a 15 per cent stake in MySale through her offshore vehicle Shelton Capital Management.
Ashley and Green became the most important shareholders within the flash-sale specialist following its listing on the London Stock Exchange in 2014, but Ashley decided to dump his investment five years later.
Were Green to sell his stake at 2p-per-share, as per Frasers’ asking price, the previous Arcadia Group chairman could be making a major loss – possibly around £80million – on condition that he bought MySale shares after they were valued at 226p.
The move for MySale comes amid a frenzy of takeovers by Frasers, which frequently buys up financially-troubled firms at bargain-basement prices.
Women’s fashion retailer Missguided, Australian luxury footwear and streetwear seller Sneakerboy and digital retailer Studio Retail Group have all been rescued out of administration by the business.
Frasers Group shares closed trading 0.7 per cent lower at 653.5p on Tuesday, although their value has declined by nearly 15 per cent thus far this yr.
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