Accent Group board tells shareholders to reject Frasers Group takeover bid

The news: The board of Accent Group has urged its shareholders to reject a hostile takeover offer by UK retailer Frasers Group, saying the offer price of 65 cents per share represents “no premium” to the company’s current share price, and describing the proposal as “materially inadequate”.

The context: The board said the timing of the takeover bid, announced earlier this month, was “highly opportunistic”, and launched during a period of “cyclical weakness in the discretionary consumer retail sector”.

The directors also noted that Frasers, owned by British billionaire Mike Ashley, has a conflict of interest in tabling the bid, as it is currently engaged in a strategic partnership with Accent to roll out the Sports Direct brand in Australia.

Accent shares last closed at 71 cents per share, having fallen 49% over the last 12 months. Frasers’ on-market takeover offer is worth 65 cents per share.