Frasers Group 95% shareholding in MySale to trigger takeover?
Sports Direct owner Frasers Group has confirmed a total shareholding of 95.35% of shares in Australian online marketplace MySale, enough to trigger a takeover bid, which analysts say is "likely".
Hannah Abdulla
November 4, 2022
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The decision to downsize is part of a broader strategy to drive efficiencies following the company’s recent acquisition spree. Credit: Shutterstock
As of 1 November, Frasers Group owned enough acceptances to enable it to follow through with takeover acceptance conditions regarding MySale.
Frasers Group reiterated that on acquiring over 75% of shares it would explore options to cancel the admission of MySale shares to trade through the Alternative Investment Market (AIM) on the London Stock Exchange.
It also said it intends to exercise its right to compulsorily acquire the remaining capital under the same terms of its initial mandatory offer of GBP2 pence per share, an amount which was earlier deemed to “undervalue” the brand and its prospects by MySale directors.
Pippa Stephens, apparel analyst at GlobalData told Just Style: “Given the Frasers Group’s history of acquiring companies to expand its high street empire, it seems very likely that it will take the opportunity to do the same with MySale after obtaining 95% of its shares. This will allow it to capitalise on the fact that discounters are expected to become more favoured among consumers amid the current cost-of-living crisis due to offering more affordable products, but it must ensure it does not bite off more than it can chew now that it owns so many brands.”
In August Frasers tabled a bid to take over the Australia-based fashion marketplace saying the move would allow it to increase its presence in Australia and New Zealand faster than it would via organic growth as it embarks on a bid to grow its business outside the UK and further international expansion through acquisitions, joint ventures, and organic openings.
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Launched in Australia in 2007, MySale describes itself as an online off-price, retail platform offering a large, curated selection of branded fashion, beauty and homewares products through three core websites and associated mobile applications, including OZSALE.com.au, NZSALE.co.nz and SINGSALE.com.sg.
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