Frasers acquires 95 percent of Mysale shares, could trigger acquisition and AIM delisting

After undergoing a lengthy process, Frasers Group has announced that it has acquired 95.35 percent of Mysale’s shares as its offer period for the Australian marketplace's shareholders came to a close.

As of November 1, the group said it now owns or has received valid acceptances totaling over 991.5 shares, representing a percentage that will enable it to follow through with its takeover acceptance conditions.

Following the announcement, Frasers once again confirmed that, on acquiring an excess of 75 percent of shares, it would explore its intention to apply to cancel the admission of Mysale shares to trade through AIM.

In a regulatory filing, it further noted, upon cancellation, the liquidity and marketability of the marketplace’s shares would be significantly reduced.

Frasers also said it intends to exercise its rights to acquire compulsorily the remaining capital under the same terms of its initial mandatory offer of two pence per share.

Lengthy acquisition process

It comes after the group, which owns the likes of Sports Direct and Flannels, began the long-winded process to acquire the retailer on August 17, when it first revealed its plan to make an offer on Mysale’s entire issued share capital.

MySale had initially rejected its offer to buy a 100 percent stake in the company in September, stating to shareholders that the cash offer “undervalues the business”.

It later reversed its decision, and instead recommended for its shareholders to accept the group’s offer despite initial concerns.

Frasers announced that its mandatory offer had become unconditional on October 18.

Acquisition hungry Frasers Group became the marketplace’s biggest shareholder in June when it bought a 28.7 percent stake in the business.

On the first announcement of its plans, Frasers said a takeover would allow the group to grow its presence in Australia and the surrounding regions, and would also help its own portfolio of brands to clear their end-of-line products via Mysale’s established clearance channel.

Frasers Group has made a number of acquisitions in recent months in a bid to expand its high street empire.

This year alone, the group has bought British fast fashion retailers I Saw It First and Missguided, as well as value e-commerce platform Studio Retail.