MySale directors urge shareholders to reject Frasers bid

Australia-based fashion marketplace MySale is recommending shareholders reject a takeover offer by Frasers Group, with directors saying it undervalues the brand and its prospects.

The decision to downsize is part of a broader strategy to drive efficiencies following the company’s recent acquisition spree. Credit: Shutterstock

In a bourse disclosure, shareholders were advised not to accept the 2 pence per MySale share which directors said did “not reﬂect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects.”

It added the offer is not considered fair and reasonable by the directors and that shareholders should not accept the offer.

Ultimately, the final decision will come down to MySale’s shareholders. Currently, Frasers Group holds a 28.7% stake in the business. Should Frasers receive enough acceptances to increase its interest in MySale Shares to more than 50%, it would then hold sufficient voting rights of the company giving it control.

Frasers Group was unavailable to comment at time of press.

In August Frasers tabled a bid to take over 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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Just Style.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Frasers also said the deal would allow it to clear end-of-line products via MySale’s established clearance channel.

The UK group became the biggest shareholder in June when it took a 28.7% stake in the business.

Frasers has been on an aggressive acquisition drive in recent months. In June, it upped its investment in Hugo Boss, and now owns a 26% stake in the brand.

While in July, it added its first fast-fashion pureplay to its roster by acquiring Missguided in a GBP20m deal.