Frasers is set to table another cash offer for Aussie fashion marketplace MySale after a top shareholder made an “irrevocable commitment” to offload his stake to the retail group, handing it 48 per cent control.
MySale shareholders last week rejected a 2p-per-share takeover bid by Frasers on the grounds that it undervalued the firm. But the family investment office of Carl Jackson, who resigned from his role as non-executive chairman of MySale last week over conflicts of interest in the sale, has struck a deal to sell 103,745,000 shares to the group
Under takeover rules, Frasers’ 48 per cent stake now means it is required to table another cash offer for the firm, with bosses at the group saying this morning that they will not hike their offer of 2p-per-share.
Frasers said this morning it believes that the offer will provide MySale shareholders with the opportunity to “achieve an immediate liquidity event”.
“Frasers also believes that a price of 2 pence per MySale share for any MySale Share during the 12 months prior to the date of this announcement reflects a fair valuation,” the firm added.
Frasers has climbed back into London’s flagship FTSE 100 index in recent weeks under the leadership of Michael Murray, who took over from his father-in-law and founder Mike Ashley.
The fashion group, which also owns Sports Direct, has pushed through a flurry of acquisitions in recent months – including fast fashion firm Missguided – in recent months in a bid to diversify its portfolio of brands.