On September 16, 2022, MySale directors published their response to the offer, recommending that MySale shareholders do not accept the offer as “they are of the view that a price of 2 pence per MySale share does not reflect an adequate value of MySale and undervalues MySale and its prospects”.
After Australia’s MySale Group rejected Frasers Group’s cash offer last month to buy a cent per cent stake, saying it undervalued the business, the latter has inched closer to acquiring the former after Jackson Family Capital Pty Ltd., a major shareholder in the flash sales site, made an ‘irrevocable commitment’ to sell 103,745,000 shares to the UK group.
On the same date, Carl Jackson resigned from his position as the non-executive chairman of MySale due to “conflicts arising in his role as a director of MySale with his personal position as a substantial MySale Shareholder” and informed the board of MySale that he intended to accept the Frasers Group’s offer.
Frasers has also received an irrevocable commitment from Jamie Jackson to sell a further 62,145,385 shares at 2 pence each, and is now interested in 481,276,224 MySale shares, representing 48.5 per cent per cent of the voting rights of MySale.
Under Rule 9 of the Takeover Code, Frasers was now required to make that mandatory cash offer for the Mysale shares not already held by it or by “any persons acting in concert with it”. Frasers, therefore, announced that the offer is now a ‘mandatory cash offer’.
The group also intends to purchase MySale shares within the market on the Alternative Investment Market (AIM) or otherwise from MySale shareholders in accordance with the code, it said in a note.
Fibre2Fashion News Desk (DS)