// MySale recommends its shareholders to accept Frasers Group’s offer
// The board of MySale said Frasers expected to own 504,113,926 MySale Shares or 48.48% of the voting rights
MySale has recommended its shareholders to accept Frasers Group’s offer despite it undervaluing the business.
The board of MySale said Frasers expected to own 504,113,926 MySale Shares or 48.48% of the voting rights based upon the issued share capital of the online retailer.
MySale believes that Frasers’ offer undervalues the company and its future prospects.
However as a result of Frasers’s interest in MySale Shares, the board is now recommending that MySale shareholders accept the offer.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
The board believes that Frasers will be able to “exercise significant control” over the company such as being able to pass and/or block resolutions (as applicable) at any general meeting of MySale.
MySale said it could be very difficult for a shareholder who does not accept the offer to sell and monetise their shareholding in the company in a reasonable timeframe without having a material impact on the price of MySale shares.
In considering the current and future liquidity requirements of shareholders, the board now believes the offer represents “the best opportunity for MySale shareholders to realise value for their MySale shares in the foreseeable future”.
