// Frasers Group has had its mandatory cash offer for further shares in MySale accepted
// The owner of House of Fraser and Jack Wills has said that if it acquires substantially more shares, it could de-list the company from the stock exchange even if its buyout offer isn’t fully accepted
Frasers Group’s bid to take control of the Australian fashion marketplace MySale has taken another step forward after it increased its stake in the company to nearly 50%.
The owner of Sports Direct, House of Fraser and Jack Wills and more has acquired 100,000,000 MySale shares from Jackson Family Capital.
It has also purchased 62,145,385 MySale shares from the brand’s Founder and Chairman, Jamie Jackson.
Frasers is offering 2p for each share, down on the £1+ they were trading at less than a year ago and even further down on the £18 each price back in 2017.
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MySale’s board rejected Frasers’ offer of 2p per share insisting that the bid did not reflect “an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects.”
But Frasers has urged MySale shareholders to accept its 2p per share offer and said that if it acquires substantially more shares, it could de-list the company from the stock exchange even if its buyout offer isn’t fully accepted.
Frasers has also agreed to snap up a further 1,000,000 shares from “others in the market”, which once settled would mean it holds 50.01% of MySale’s issued share capital – enough to make its offer unconditional.
However, is still well short of giving it the freedom to de-list the firm as that relies on it acquiring more of the shares.
It comes after Frasers Group increased its stake in MySale to 28.7% at the end of June, for an undisclosed sum.
On September 16 MySale shareholders rejected a 2p-per-share takeover bid from Mike Ashley’s business that includes Sports Direct and Jack Wills, as they felt it did not “reflect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects”.
On the same date, Carl Jackson resigned from his role as the non-executive chairman of MySale due to “conflicts” and his position as a “substantial shareholder” in the business, having supported the Frasers bid.
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