Frasers Group acquires more MySale shares and makes mandatory cash offer
Frasers Group moved closer to acquiring MySale after a major shareholder in the online fashion marketplace made an “irrevocable commitment” to sell 103,745,000 shares to the retail group.
The news comes after Australia-based MySale Group rejected Frasers Group's cash offer on 17 August to buy a 100% stake as it "undervalues the business".
On 16 September 2022, MySale directors published the Australia-based Group's response to the offer, recommending that MySale Shareholders do not accept the offer as "they are of the view that a price of 2 pence per MySale Share does not reflect an adequate value of MySale and undervalues MySale and its prospects".
On the same date, Carl Jackson resigned from his position as the Non-executive Chairman of MySale due to "conflicts arising in his role as a director of MySale with his personal position as a substantial MySale Shareholder" and informed the Board of MySale that he intended to accept the Frasers Group's offer.
Frasers has also received an irrevocable commitment from Jamie Jackson to sell a further 62,145,385 shares at 2p each, and is now interested in 481,276,224 MySale Shares, representing 48.5% per cent of the voting rights of MySale.
Under Rule 9 of the Takeover Code, Frasers is now required to make that mandatory cash offer for the Mysale shares not already held by it or by “any persons acting in concert with it”.
The Group said it also intends to purchase MySale Shares within the market on AIM or otherwise from MySale Shareholders in accordance with the Takeover Code.
