Frasers’ bid to become the largest shareholder in Australian fashion marketplace MySale has ben rejected.
Mike Ashley’s fashion empire Frasers, which also owns Sports Direct, offered to buy a 28.7 per cent stake in the company at 2p per share in late June.
The offer was the minimum price Frasers could have offered MySale, which has a valuation of &&&, under current regulations.
Directors at MySale noted in a statement today that the offer price “implies exit valuation multiples for MySale which are below those at which the MySale Shares have traded in recent years.”
MySale non-executive director Carl Jackson resigned from the board earlier today over the “unsolicited” offer, due to a conflict with him being a director and his personal position as a substantial shareholder.
The online retailer, which aborted its Australian initial public offering (IPO) in November last year, added that it has had no “material” discussions with Frasers over the compatibility of the pair under the deal.
Earlier this month, Frasers said the offer would allow the “opportunity to clear end of line Frasers products via MySale’s established clearance channel, which Frasers and MySale could utilise to grow and develop MySale.”