MySale in U-turn after backing £19m takeover offer from Frasers Group

MySale in U-turn after backing £19m takeover offer from Mike Ashley’s Frasers Group

MySale is set to be snapped up by Mike Ashley’s Frasers Group after it performed a U-turn to back his £19million takeover bid.

The Australian fashion group said Ashley’s 48.48 per cent stake means he is in ‘effective control’.

And despite maintaining his 2p per share offer still ‘materially undervalues’ MySale, the board unanimously recommended shareholders vote for it. 

Takeover deal: Australian fashion group MySale said Mike Ashley’s 48.48% stake means he is in ‘effective control’

It warned that if Ashley is rejected he will still have ‘significant control’ over the company.

MySale, which buys excess stock in Europe and sells it cheaply in Australia, New Zealand and South East Asia, had sought to fend off the tracksuit tycoon. 

Frasers, which owns Sports Direct, House of Fraser and Evans Cycles among others, bought a 28.7 per cent stake in July.

A month later it embarked on a full takeover bid, at 2p a share. That pitted Ashley against arch-rival Sir Philip Green, MySale’s second-largest shareholder.

The takeover looked increasingly likely after MySale’s founders backed it, agreeing to sell their shares to Frasers.