Frasers extends on-market takeover for Accent Group to September
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The news: UK retail billionaire Mike Ashley’s Frasers Group has extended its on-market cash takeover offer from a close date of 30 July to 30 September.
The numbers: Frasers currently has a 22.9% interest in Accent Group. The bidder has been unable to acquire any additional shares because its offer price of 65 cents per share has sat below the trading price since the offer was made. The stock last closed at 72 cents per share.
The context: The Accent independent board committee continues to recommend that shareholders reject the deal. Some shareholders are also betting that Frasers will come back with a higher offer in order to grow its interest.
The Takeovers Panel is currently considering whether they will accept an application from Frasers Group that argues that Accent’s rejection of the offer was not based on “clearly disclosed reasons, which are soundly based and reasonable”.
