MySale urges investors to reject Frasers bid

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  • MySale, included on the target list, said the offer underestimated the company and its prospects.
  • It was also the lowest price Fraser could offer under city rules.
  • MySale non-executive chairman Carl Jackson resigns as he backs proposal

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Fraser Group’s attempts to take full control of MySale failed after the firm urged investors to reject a £14 million offer on the grounds that it was too low.

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The Australian fashion market said Fraser’s 2p-per-share offer underestimated the company and its prospects, noting that it was the lowest price an owner of Sports Direct could offer under city rules.

MySale also announced that non-executive chairman Carl Jackson stepped down with immediate effect “as a result of conflicts arising” from being both a director and a major shareholder.

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Jackson, who owns an 11% stake in MySale, backs Frazier’s proposal.

Quick sale site MySale said Frazier’s offer underestimated the company and its prospects.

Fraser, the Mike Ashley retail giant behind House of Fraser, Flannels and Evans Cycles, acquired a 29 percent share of the fashion market in June.

The move made her MySale’s largest shareholder, ahead of Sir Philip Green, who owns 16% through his wife’s offshore company Shelton Capital Management.

Fraser then made an offer of 2p a share in August to gain control of the rest of the firm, which he does not yet own, valuing MySale at around £13.6m.

MySale noted that Fraser’s offer was made at a discount of about 26% from the closing price of 2.69p on August 16, the day before the retail giant announced its takeover bid.

In the 12 months to Aug. 16, MySale’s average closing price was 4.26 pence per share, according to the company.

The directors also confirmed that they were not approached with the offer and did not have any “substantial” discussions with Frazier beforehand.

They said this made it impossible for them to quantify the potential benefits the deal could have in terms of “access to additional brands and volumes of products sold through the MySale platform,” as well as any impact on revenue and profit margins.

“The directors believe that MySale’s 2p per share price does not reflect an adequate value or premium for controlling MySale and therefore underestimates MySale and its prospects,” the company told investors today.

‘Accordingly, the directors of MySale […] do not consider the terms of the Offer to be fair and reasonable and therefore recommend MySale’s shareholders not to accept the offer.”

MySale Promotions were 13.6% up 2.5 pence by market close on Friday. Shares Fraser Group fell 2 percent to 786p.

MySale is a quick sale site that connects buyers and sellers from all over the world to Australian and New Zealand e-commerce sites.

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