Bonmarché says takeover offer undervalues the business
The board of women’s fashion retailer Bonmarché has said the full offer made for the business by Philip Day’s Spectre Holdings earlier this month materially undervalues the business and its future prospects.
Day launched a mandatory takeover bid for the retailer after acquiring a 52.4% stake. This included an offer to buy the remainder of the business at the same price per share of 11.445 pence.
In a statement issued today, Bonmarché said: “In view of Spectre’s position as the majority shareholder in Bonmarché, the board has sought to engage with Philip Day to discuss the future plans for the business for the benefits of all stakeholders. The board continues to seek positive engagement with Philip Day and looks forward to discussions in due course.
“The board will be writing to shareholders with its formal response to the mandatory cash offer once the offer document has been posted by Spectre. In the meantime, Bonmarche shareholders are strongly advised to take no action in relation to their Bonmarché shares. Further announcements will be made as and when appropriate.”
Bonmarché also said that plans made earlier in the year for a number of cost saving measures would be implemented shortly. Last month the retailer said it expects to make an underlying pre-tax loss of between £5 million to £6 million for the year to 31 March 2019 after struggling with sales.
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