MySale directors reject Frasers Group’s takeover bid as Chairman exits

Australia-based MySale Group has rejected Frasers Group's cash offer to buy a 100% stake as it "undervalues the business".

Last month, Frasers Group made a cash offer at a price of 2p per share, after it acquired a 28.7% stake for an undisclosed sum in June 2022.

The company said in a statement: "The MySale directors are of the view that a price of 2p per MySale share does not reflect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects."

Launched in Australia in 2007, MySale serves as a go-to destination for hard-to-own fashion and lifestyle items ranging across apparel, shoes, accessories, homewares and lifestyle, beauty, kids and baby. The group works with a number of UK brands including Hackett, Hobbs, Reiss and Whistles.

Frasers Group had hoped that the offer would help to accelerate its global growth strategy, enhance its operational capabilities and offer to consumers, and provide a platform to further explore opportunities for investment in retail opportunities in Australia and the surrounding regions.

MySale is now urging all shareholders to reject the offer.

The company also announced that Carl Jackson, Non-Executive Chairman, has resigned from the Board of MySale, with immediate effect, as a result of conflicts arising in his role as a Director of MySale and his personal position as a substantial shareholder in MySale.

In light of the unsolicited offer from Frasers Group and Jackson’s immediate resignation, Charles Butler, Senior Independent Director, will now remain as a Director of the Company, until the earlier of the Company’s Annual General Meeting, expected to be held in December 2022.