Accent Group Board Committee Recommends Rejecting Frasers’ $274M Takeover
Accent Group's Response to Frasers Group Takeover Offer
June 22 (Reuters) - Australia's Accent Group said on Monday that an independent board committee comprising all but one of its directors recommended to reject the A$390.8 million ($274 million) takeover offer from its top shareholder, Britain's Frasers Group.
Key Details of the Takeover Offer
Here are the details:
Offer Price and Premium Analysis
• The committee set up by the footwear and sportswear retailer highlighted that the offer price of A$0.65 a share matched Accent's last closing price before the offer was announced, representing no premium.
Board Committee's Assessment
• It added that the offer was materially inadequate and that the timing was "highly opportunistic", noting it comes during a period of cyclical weakness in the discretionary consumer retail sector.
Comparison with Previous Share Purchases
• The offer, which was announced a week ago, was lower than the over A$0.90 per share paid on average in early February by the Britain-based sporting goods retailer Frasers to acquire Accent shares.
Exchange Rate Information
($1 = 1.4263 Australian dollars)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Himani Sarkar)
