MySale share price rallies as founder Carl Jackson eyes £3m share-buy

 
Kasmira Jefford
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Carl Jackson, left, aims to help shore up share price by buying more shares

MySale shares recovered some lost ground yesterday after one of the founders of the flash sales website pledged to buy £3m shares following a profit warning which wiped £150m off its market value.

Chief executive Carl Jackson, who started the company with his brother James, said he was considering acquiring shares equivalent to around three per cent of the Aim-listed company, which floated in June.
Jackson already owns a 34.8 per cent stake in MySale as part of a group – known as a concert party – that includes his brother and other minor shareholders.
Buying any more shares would require Jackson to make an offer for the company under the Takeover Panel rules or get a waiver from shareholders carrying 50 per cent or more of MySale’s shares.
MySale’s backers include Topshop owner Sir Philip Green, who controls a 22.5 per cent stake through his family investment vehicle Shelton Capital.
Green and Mike Ashley, whose retail empire Sports Direct owns a five per cent stake, have seen their shares lose more than half of their value since Monday when MySale warned profits would be “materially below market expectations”.
Shares rose 5.3 per cent last night to 69.5p but are still down a 60 per cent since Friday’s close. This is also significantly below its 226p offer price.

WHAT IS A CONCERT PARTY?

It sounds like a musical event but in fact a concert party is a group of people who “pursuant to an agreement or understanding (whether formal or informal), co-operate to obtain or consolidate control of a company,” according to the Takeover Code.
In MySale’s case, the concert party includes the Jackson brothers and other members of the management team including trading director Kevin Cliffe and James Lees, head of digital marketing acquisition.
Carl Jackson sold his shares in the MySale when the company listed on Aim in June, so the £3m share acquisition would be his first individual investment since its market debut.
But because he is part of the concert party, buying any additional shares over the 30 per cent threshold would trigger a requirement to make a takeover offer.
MySale is asking for written statements from other shareholders with at least 50 per cent of the stock confirming that they would waiver an offer. Longstanding backer Sir Philip Green is expected to show his support.

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