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MySale Group PLC on Wednesday responded to the takeover offer from Frasers Group PLC, and said it will ‘evaluate’ the offer.
Frasers Group PLC earlier on Wednesday announced a takeover offer for Australian online retailer MySale, in which it is already the largest shareholder.
The Shirebrook, England-based retail group, which owns House of Fraser and Sports Direct, is offering 2 pence per MySale share. Since the end of June, Frasers has held a 29% in AIM-listed Mysale.
The offer values the share capital Frasers doesn't currently hold at £13.6 million.
MySale confirmed it was not approached and did not have any discussions with Frasers beforehand. It urged its shareholders to take no action at this time.
MySale shares were trading 22% lower at 2.10p on Wednesday afternoon in London, while Frasers shares were up 0.1% at 897.50p.
The offer price is a 26% discount to Tuesday's closing price of 2.69p.
However, Frasers noted it is a 60% premium to the closing price on June 28, before it increased its stake. It is also a 51% premium to the average price in the three months to that date.
As far as the rationale for the potential acquisition, Frasers said MySale would be complementary to the existing group, and would benefit from counter seasonality between the European and Australian climates.
‘Through the combination of the resources available to Frasers Group and the capabilities of the MySale business, Frasers Group believes the offer can accelerate Frasers Group's global growth strategy, enhance its operational capabilities and its offering to consumers and provide a platform from which to explore further opportunities for investment in retail opportunities in Australia and the surrounding regions,’ it explained.
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