Frasers Group is intensifying its efforts to obtain a majority stake in MySale, as it discloses its nearing ownership of over 50% of the company’s shares. However, it falls short of its initial goal of acquiring 75% or more. MySale has warned that even if Frasers Group’s buyout offer is not fully accepted, it has the potential to de-list the company from the stock exchange. This presents a dilemma for shareholders who are reluctant to sell their shares.
Frasers Group is currently offering 2p per share, which represents a significant decline from the value of over £1 per share they held just a year ago, and a substantial drop from the £18 per share price in 2017.
In a recent update, Frasers Group revealed that less than 1% of MySale representative shares have been voted in favor of its mandatory offer. The company is strongly encouraging shareholders to accept the offer before the November 1 deadline and asserts that it is not aware of any other interested parties seeking to acquire MySale.
Furthermore, Frasers Group disclosed that the Jackson family, alongside other market participants, have agreed to sell their holdings, allowing Frasers Group to acquire an additional 1,000,000 shares. Once this transaction is finalized, Frasers Group will possess a 50.01% share capital of MySale. Although this would make the offer unconditional, it still does not meet the majority required to de-list the company. Frasers Group would need to acquire more shares to achieve this. If they manage to reach a 90% stake, they can forcefully acquire the remaining shares under Jersey Law. Nevertheless, if they only reach a 75% holding by the deadline, Frasers Group has stated that it will contemplate applying for the cancellation of MySale shares’ admission to trading on AIM. Such a move would decrease the liquidity and marketability of the shares, potentially having a negative impact on their value.
Useful links:
1. MySale Group
2. Frasers Group
