Frasers Group, the retail conglomerate that owns popular brands including Flannels, Jack Wills, House of Frasers, and Sports Direct, is making progress towards gaining majority ownership of Australian and New Zealand-based close-out business MySale. In a recent announcement, Frasers Group revealed that it has purchased an additional 65,385,488 shares, bringing its total stake in MySale to 580,104,135 shares, representing 55.8% of the company’s issued share capital.
Although Frasers Group has not yet achieved full ownership, the process of gaining approval from shareholders for its offer of 2p per share has been slow. However, there has been a positive development as the MySale board, who previously considered the offer undervalued, changed their stance and recommended the offer. This change in position seems to have influenced the acceptance of the offer.
Frasers Group initially increased its stake in MySale to 29% in June and subsequently launched its mandatory cash offer in late September. The company’s objective is to expand its operations beyond the UK, and acquiring MySale provides an opportunity for further international growth. The purchase of MySale will allow Frasers Group to strengthen its presence in Australia and the surrounding regions more quickly than through organic expansion. Moreover, MySale’s business model, which involves clearing end-of-line products, aligns well with Frasers Group’s objectives. The difference in seasons between Europe and Australia also presents additional advantages and opportunities.
For Frasers Group, the acquisition of MySale represents a significant step in its expansion strategy. With majority ownership of this close-out business, Frasers Group can leverage its established clearance channel and efficiently tap into the Australian market. The completion of this acquisition will signify a new chapter in Frasers Group’s growth journey and establish the conglomerate as a major player in the retail industry, both in domestic and international markets.
Useful links:
1. Frasers Group Official Website
2. MySale Official Website
