Bonmarche: Philip Day offer ‘undervalues’ business
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Womenswear retailer Bonmarche has said Philip Day’s £5.7m acquisition of the company “materially undervalues” the business and its future prospects.
Spectre Holdings, an entity wholly owned by Day, announced the acquisition of more than half of the retailer’s shares on 2 April. He made an offer of 11.445p per share which was significantly lower than the company’s closing price of 18p the previous day.
As a result of Spectre’s acquisition, it is required to make a mandatory cash offer for the shares it does not already own.
The board said it looked forward to entering discussions with Day and Spectre and sought “positive engagement”. In the meantime, it advised its shareholders to take no action in relation to their shares.
Bonmarche also said it would begin implementing planned cost reduction actions across the group in light of its financial results for the year ended 31 March 2019.
The company said: “In view of Spectre’s position as the majority shareholder in Bonmarché, the board has sought to engage with Philip Day to discuss the future plans for the business for the benefits of all stakeholders. The board continues to seek positive engagement with Philip Day and looks forward to discussions in due course.”
