The directors of Australian-based fashion marketplace MySale have recommended that shareholders do not accept Frasers Group’s offer to snap up the business.
In August Shirebrook-based retailer Frasers Group revealed a cash offer to acquire the entire issued and to be issued ordinary share capital of MySale not already held by the business for 2 pence per share.
It came after Frasers Group acquired a 28.7% stake in MySale earlier this year.
The offer valued the rest of the company at approximately £13.6 million.
At the time Frasers Group said that it had “extensive ambitions to grow its business outside of the UK and is exploring the potential for further international expansion through acquisitions, joint ventures and organic openings.”
The company noted it had not made an approach to, or had any discussions with, MySale management in relation to the offer. Frasers Group added that it intends to invest in MySale and use MySale as a vehicle for making other investments in the region.
Now, however, the MySale directors have said they “are of the view that a price of 2 pence per MySale Share does not reflect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects.”
A statement continued: “Accordingly, the MySale directors, who have been so advised by Singer Capital Markets as to the financial terms of the offer, do not consider the terms of the offer to be fair and reasonable AND THEREFORE RECOMMEND THAT MYSALE SHAREHOLDERS DO NOT ACCEPT THE OFFER, just as they will not accept the offer in respect of their own shareholdings in MySale.”
