MySale rejects Frasers Group bid, chairman quits
Frasers Group's bid to buy MySale has been rejected. The Australian online flash sales fashion platform said it considered the bid to be neither “fair” nor “reasonable”.
Frasers, which already owns a near-29% stake in MySale, made its approach to buy the rest of the business last month. The offer valued the shares not held by Frasers Group at £13.6 million and put a £19 million valuation on all of MySale’s equity.
In the announcement to the London Stock Exchange Friday, MySale said that the offer of 2p a share for its stock from Frasers, which owns Sports Direct, Flannels, House of Fraser, Missguided, ISawItFirst, and Studio Retail, did not “reflect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects”.
MySale has now recommended that shareholders “knock back” any offer in its current form as the board will “not accept” the offer in respect to their own shareholdings in the business.
MySale also revealed that its chairman Carl Jackson has resigned from the group’s board. It said that Jackson, who had been with the retailer since 2009, had stood down from his post due to “conflicts” and his position as a “substantial shareholder” in the business, having supported the Frasers bid.
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