Frasers closer to acquire MySale as it gains control of 48% of shares

Frasers Group is one step closer to winning the battle to gain control of MySale, after the bid won the irrevocable support of the Australian retailer’s founder.

Jamie Jackson, who founded MySale in 2007, and his brother Carl Jackson will sell their shares to Frasers, giving it control of 48.5 percent of the flash sale retailer.

Frasers, which had a 29 percent stake, said the takeover rules now required it to make a mandatory cash offer for MySale stock it doesn’t already own.

It added that his 2 pence offer was final and will not be increased unless another suitor breaks the deal with a higher bid, in which case Frasers could increase his offer.

Earlier this month, MySale urged investors to decline Frasers’ 2 pence per share offer, saying it undervalued the company and its prospects.

It also noted that this was the minimum price the Sports Direct owner could have offered under city rules.

But MySale’s rejection was undermined when chairman and founder Carl Jackson stepped down over his decision to support Ashley’s offer.

Jackson is MySale’s fifth largest shareholder, with a 10.6 percent stake. He will be replaced by senior director Charles Butler.

Sir Philip Green, the entrepreneur behind the now-defunct Topshop, is also a 16 percent shareholder through his wife’s offshore vehicle Shelton Capital Management.

When Green invested in the corporate shares, the shares were worth 226p meaning he would take a loss of around £80m if the takeover were approved.

The move comes at a significant time for Frasers after Mike Ashley revealed last week that he will step down as president of the retail empire he started with a single store four decades ago.

Ashley still owns 69 percent of Frasers, while his son-in-law Michael Murray is the chief executive.

Frasers Shares were down 1.5 percent to 730p in morning trading Monday.

AIM Listed MySale Shares also fell 4.8 percent to 2p.