Frasers Group’s £14m bid to acquire MySale rejected

// Frasers Group bid to take full ownership of MySale is rejected

// MySale said the £14m bid was the lowest the Sports Direct owner could have offered

Frasers Group’s bid to take full ownership of MySale has received a blow after the company said a £14 million bid is too low.

At two pence per share, online retailer MySale said the bid was the lowest the Sports Direct owner could have offered.

Frasers Group said its aim for acquiring MySale would be that it would complement its existing offering.

However, MySale said no discussions on commercial collaborations have taken place.

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Frasers Group acquired a near 29% stake in MySale in June.

MySale’s current directors have recommended shareholders reject the Frasers offer.

MySale operates in Australia and New Zealand. Frasers Group owns retailers such as Sports Direct, House of Frasers and Evans Cycles.

MySale’s non-executive chair Carl Jackson has also stepped down immediately. Jackson is a “substantial shareholder” in the company and supports the Frasers bid.

Frasers in August tabled a bid to take full ownership of MySale. At 2p per share, it valued the MySale share capital Frasers does not already own at £13.6 million. It put a £19 million valuation on all of MySale’s equity.

“The MySale directors are of the view that a price of 2 pence per MySale share does not reflect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects,” MySale said.