Frasers takeover bid rejected by Australian fashion hub MySale
Fraser Group’s efforts to take full control of MySale have been dealt a blow after the firm urged investors to reject a £14million offer as it did not consider the terms “fair” or “reasonable”.
In an announcement to the London Stock Exchange, MySale said that the offer of 2 pence a share for MySale stock from Ashley’s business that includes Sports Direct, House of Fraser and Jack Wills, did not “reflect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects”.
MySale also announced that non-executive chair Carl Jackson has stepped down with immediate effect as ‘a result of conflicts arising’ from him being both a director and a substantial shareholder.
Jackson, who owns an 11 per cent stake in MySale, backs the Fraser’s bid.
Fraser, Mike Ashley’s retail giant behind House of Fraser, Flannels and Evans Cycles, snapped up a 29 per cent stake in the fashion marketplace in June. The move made it MySale’s largest shareholder – ahead of Sir Philip Green who owns 16 per cent through his wife’s offshore vehicle Shelton Capital Management.
Then in August Fraser made a 2p per share offer to gain control of the rest of the firm it does not already own, valuing MySale at around £13.6million.
The retailer is understood to want to use a potential acquisition to boost its position across Australia and New Zealand and allow for other investments in the region, including in bricks and mortar retail outlets. Frasers could also use MySale to sell off end of line products from across the group.
Launched in Australia in 2007, MySale focuses on fashion and lifestyle items from apparel, shoes, accessories, homewares, beauty, kids and baby items.
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