Business
Britain’s Frasers launches bid for Norway’s XXL
Published by Jessica Weisman-Pitts
Posted on December 13, 2024
2 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on December 13, 2024
2 min readLast updated: January 28, 2026
LONDON (Reuters) -British sportswear and fashion group Frasers on Friday launched a bid for Norwegian sporting goods retailer XXL ASA, saying it did not agree with the Oslo-listed company’s plan to issue more shares.
LONDON (Reuters) -British sportswear and fashion group Frasers on Friday launched a bid for Norwegian sporting goods retailer XXL ASA, saying it did not agree with the Oslo-listed company’s plan to issue more shares.
Frasers, majority owned by Mike Ashley, said it was offering 10 Norwegian crowns ($0.9044) per share for the equity it does not own in XXL – a premium of 25% over its closing price of 8 crowns on Thursday and valuing the group at 246.4 million crowns ($22.3 million).
Shares in XXL, which last month pushed back its expectations for a recovery in the Nordic sporting goods market to 2025, were up 24.9% at 9.99 crowns each at 1201 GMT.
Frasers already holds 25.8% of the issued share capital of XXL, which also operates in Sweden, Finland, Denmark and Austria.
“The proposed Alternative Rights Issue is wrong, its legality is questionable and its implementation will be extremely detrimental to both Frasers and the other minority holders,” Frasers said.
It said XXL should not be asking shareholders for further funding when “it has not articulated any clear plan to address and resolve the root causes of its persistent problems”.
Frasers said XXL was unable to secure adequate stock levels and was struggling with paying its suppliers.
XXL said in a statement its board would consider Frasers’ announcement and its implications for the ongoing equity financing process, adding it would provide more information in due course. It did not comment on Frasers’ criticisms.
XXL is looking to raise up to 600 million crowns through a rights issue. The proceeds would be used for working capital investments aimed at strengthening revenue growth and restructuring inventories, as well as repaying a bridge loan of 200 million crowns.
Its biggest shareholder, Altor, which has a 45.9% stake with 33.3% of ordinary voting rights, declined to comment.
Frasers has been expanding overseas with recent deals in the Netherlands, Australia/New Zealand and Africa. On Thursday it cut its profit guidance, blaming a drop in consumer confidence caused by the UK government’s budget.
($1 = 11.0411 Norwegian crowns)
(Reporting by James Davey, Agata Rybska. Editing by Jason Neely, David Evans and Mark Potter)
A rights issue is a way for companies to raise capital by offering existing shareholders the right to purchase additional shares at a discounted price, usually to raise funds for specific projects or to reduce debt.
A share premium is the amount received by a company over and above the par value of its shares when they are issued. It reflects the market's confidence in the company's future prospects.
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