Australia's Accent Group jumps as top shareholder launches $277 million takeover bid
Accent Group Receives Takeover Offer from Frasers Group
Details of the Takeover Bid
June 15 (Reuters) - Australian footwear and sportswear retailer Accent Group has received a A$390.8 million ($276.80 million) takeover offer from its largest shareholder, Frasers Group, sending its shares soaring more than 16% on Monday.
Offer Price and Comparison
The offer price of A$0.65 per share in cash is equal to Accent's last close on June 12. It was lower than the over A$0.90 per share paid on average in early February by Britain-based sporting goods retailer Frasers to acquire Accent shares.
Market Reaction
Shares of Accent surged as much as 16.2% to hit a more than two-month high. The benchmark stock index was up 1.2%.
Board Response and Shareholder Guidance
The Victoria-based company said its board is weighing the offer together with its advisers and advised its shareholders to take no action.
Frasers Group Stake and Offer Period
Frasers is Accent's largest shareholder with a 22.9% stake, according to the offer statement lodged by Barrenjoey on behalf of Frasers.
The offer period ends on July 30, unless extended by Frasers.
Currency Exchange Rate
($1 = 1.4118 Australian dollars)
Reporting Credits
(Reporting by Nichiket Sunil and Keshav Singh Chundawat in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)