N Brown receives FCA approval to go private

N Brown has received watchdog approval in its pursuit of becoming a private company through a proposed acquisition by Bidco, a newly formed company owned and controlled by Joshua Alliance, a non-executive director of the British fashion group.

The takeover has been given backing by the Financial Conduct Authority (FCA), allowing for proceedings to go ahead in taking the company private.

With this approval, Alliance will acquire the entire issued and to be issued share capital of N Brown Group plc, which is to be implemented via a Court-sanctioned scheme of arrangement.

This scheme had previously been approved by the majority of scheme shareholders at a Court Meeting, and the implementation of the acquisition further received approval by the majority of N Brown shareholders.

Completion remains subject to remaining conditions, however, N Brown and Bidco expect the acquisition to be effective from 12 February 2025, following a Court Sanction Hearing two days prior.

News of N Brown’s plans first came to light mid-October 2024, when it was revealed Alliance had set out to take control of the company for a sum of 191 million pounds.

The move came in response to “N Brown’s current shareholder structure and very low trading liquidity”, Bidco said at the time, meaning that the retailer was “not benefitting from being listed on the AIM market”.

Bidco added that it planned to support N Brown in accelerating long-term growth potential through additional capital, expertise and resources.