Frasers Group moved to make the mandatory offer after acquiring 48.5% of the company’s stock including the shareholding of MySale’s former chairman Carl Jackson.
Last week, the board of directors of MySale advised the company’s shareholders to push back against an offer of 2 pence per share for the company, saying the Frasers offer “did not reﬂect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects.”
It added the offer was not considered fair and that shareholders should not accept it.
Frasers had tabled the takeover bid in August for the Australia-based fashion marketplace saying the move would allow it to increase its presence in Australia and New Zealand faster than it would via organic growth as it embarks on a bid to grow its business outside the UK and further international expansion through acquisitions, joint ventures, and organic openings.
In a bourse disclosure today, Frasers Group said: “Frasers now intends to seek to acquire additional MySale Shares by means of market or other purchases and in accordance with the Takeover Code. Frasers believes that accepting the Offer (or otherwise selling MySale Shares to Frasers) will provide MySale Shareholders with the opportunity to achieve an immediate liquidity event. Frasers also believes that a price of 2 pence per MySale Share (such price being no less than the highest price paid by Frasers (or any person acting in concert with it) for any MySale Share during the 12 months prior to the date of this announcement) reflects a fair valuation of each MySale Share.”