Frasers says MySale offer unconditional as it surpasses 50 percent stake

Following a series of attempts to acquire the entire ordinary share capital of MySale, Frasers Group has now said its mandatory offer for the marketplace has become unconditional.

In a release published through the London Stock Exchange, the fashion conglomerate, which counts the likes of Sports Direct and House of Fraser among its portfolio, noted that the revision comes as its holding in the company has grown over a majority stake.

As of 5pm GMT, October 17, the group now owns or has received valid acceptances of MySale shares representing 50.59 percent of its issued shared capital.

In the release, the group said that if it receives acceptances under its current mandatory offer or otherwise acquires 90 percent of shares, it intends to acquire the marketplace’s remaining shares under the same terms of its initial offer.

It added that if it holds 75 percent of the issued share capital of MySale, it will consider making an application to cancel the admission of the Australian company’s shares to trade on AIM.

Frasers notes intention to continue snapping up shares

Frasers does intend to continue acquiring additional shares of the retailer, and noted that any shareholders who wished to transfer their holdings to Frasers can do so through a market sale or accepting its mandatory offer.

The group initially announced it would be making an offer on MySale on August 17, later confirming this intention with an offer at a price of two pence per MySale share.

Since the announcement, it has continued snapping up bigger stakes in the retailer as it put pressure on its board of directors to accept the offer.

While MySale’s board at first requested shareholders to decline Frasers’ offer on the basis that it “undervalued” the company, it later reversed its decision and urged its shareholders to approve, despite continuing to disagree with the two pence share price.

Yesterday, October 17, Frasers once again put further pressure on MySale shareholders by urging them to accept the offer, after noting its intention to possibly take the company off AIM and re-register it as a Jersey private company.

The closing date of the recommended mandatory offer is 1pm GMT, November 1.