Frasers Group, the retail conglomerate, has made a cash offer to acquire MySale Group, a flash sale business, in which it already has a significant stake. The offer of 2p per share values the remaining percentage of the company at £13.6 million. However, despite the current share price being 2.45p, the market capitalisation of MySale stands at £23 million. Frasers Group currently owns a 28.7% stake in the Australia and New Zealand-focused business.
While Frasers Group’s offer is higher than the current share price, it represents a 60% premium compared to the closing price of 1.25p on June 28, the day before Frasers Group acquired its existing holding. However, it is a 25.7% discount compared to the closing price of 2.69p per MySale share on August 16, which was the last business day before the offer was announced.
Frasers Group has stated that its offer of 2p per share is final and will not be increased, unless there is a potential offer for MySale from a third party. The company aims to expand internationally and is actively looking for opportunities for growth through acquisitions, joint ventures, and organic openings outside of the UK. Acquiring MySale would allow Frasers Group to accelerate its presence in Australia and surrounding regions, going beyond organic growth alone. The company also sees MySale’s business as complementary to its existing operations, presenting an opportunity to clear end-of-line Frasers Group products through MySale’s established clearance channel. Furthermore, the counter seasonality between the European and Australian climates would enhance the product pipeline.
It is important to note that Frasers Group has not had any discussions with MySale management regarding the offer.
Useful links:
– Frasers Group official website
– MySale Group official website
