U-turn: Mysale directors back Frasers Group takeover

The board of directors of Australian-based fashion marketplace Mysale have reversed their decision about a potential takeover by Frasers Group and are now recommending shareholders to back the deal.

Frasers Group, whose portfolio includes Sports Direct, Jack Wills, and House of Fraser, made a mandatory cash offer to acquire the entire share capital of Mysale last month after becoming its biggest shareholder in June.

Mysale directors originally urged shareholders to reject the offer, which it said undervalued the company at a price of 2 pence per share.

U-turn

But on Wednesday, that decision was reversed. The Mysale board said that while it still believes the deal “undervalues the company and its future prospects”, it now “unanimously recommends that Mysale shareholders accept the offer”.

It comes after Frasers Group again upped its stake in the group at the beginning of October and warned it could delist the company from the stock exchange even if the takeover wasn’t accepted.

Frasers Group has been snapping up either partial or entire stakes in a slew of companies over the past few years.

Earlier this week, the group bought a 4.54 percent stake in British e-tailer N Brown Group, while earlier this year it acquired fast fashion rivals I Saw It First and Missguided, as well as British value retailer Studio Retail.