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MySale in U-turn following £19million takeover bid from Mike Ashley’s Frasers Group
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MySale is expected to be snapped up by Mike Ashley’s Frasers Group after it made a turnaround to support its £19m takeover bid.
The Australian fashion group said Ashley’s 48.48 percent stake means he has “effective control.”
And while its 2 cents per share offer still “materially undervalues” MySale, the board of directors unanimously recommended that shareholders vote for it.
Takeover deal: Australian fashion group MySale said Mike Ashley’s 48.48% stake means he has ‘effective control’
It warned that if Ashley is rejected, he will still have “significant control” over the company.
MySale, which buys excess stock in Europe and sells it cheaply in Australia, New Zealand and Southeast Asia, had tried to fend off the tracksuit mogul.
Frasers, owner of Sports Direct, House of Fraser and Evans Cycles, among others, bought a 28.7 percent stake in July.
A month later, it launched a full takeover bid for 2 pence per share. That pitted Ashley against arch-rival Sir Philip Green, MySale’s second-largest shareholder.
The acquisition seemed increasingly likely after the founders of MySale backed it and agreed to sell their shares to Frasers.