Frasers looks set to win battle over MySale takeover as Sports Direct owner gains control of 48% of shares
- MySale founder Jamie Jackson and his brother will sell their shares to Frasers
- Frasers said its 2p offer was final and will not be increased
Frasers Group has moved a step closer to winning its battle to take control of MySale after its bid received the irrevocable backing of the Australian retailer’s founder.
Jamie Jackson, who set up MySale in 2007, and his brother Carl Jackson will sell their shares to Frasers, allowing it to gain control of 48.5 per cent of the flash sale retailer.
Frasers, which had a 29 per cent stake, said that under takeover rules it was now required to make a mandatory cash offer for MySale shares it does not already own.
Frasers said it was required to make a mandatory cash offer for the remaining MySale shares
It added that its 2p offer was final and will not be increased, unless another suitor crashes the deal with a higher offer, in which case Frasers might up its bid.
Earlier this month, MySale urged investors to reject Frasers’ 2p per share offer, arguing it undervalued the company and its prospects.
It also noted that it was the minimum price the Sports Direct owner could have offered under City rules.
But MySale’s rejection was undermined when chairman and founder Carl Jackson stepped down over his decision to back Ashley’s bid.
Jackson is MySale’s fifth-biggest shareholder, with a 10.6 per cent stake. He is being replaced by senior director Charles Butler.
Sir Philip Green, the entrepreneur behind now defunct Topshop, is also a shareholder with 16 per cent through his wife’s offshore vehicle Shelton Capital Management.
When Green invested in the business shares were worth 226p, meaning he would take a loss of around £80million if the takeover was approved.
The move comes at key time for Frasers after Mike Ashley last week revealed that he will step down as a director of the retail empire he started with a single shop four decades ago.
Ashley still owns 69 per cent of Frasers, while his son-in-law Michael Murray is the chief executive.
Frasers shares were down 1.5 per cent to 730p in morning trading on Monday.
AIM-listed MySale shares were also down 4.8 per cent to 2p.