Frasers makes cash offer for MySale

Mike Ashley’s Frasers Group has made a cash offer to acquire a 100% stake in Australian online marketplace MySale for 2p per share.

The offer values the entire issued and to be issued share capital of MySale not currently held by Frasers Group at approximately £13.6m.

On 29 June 2022, Frasers Group acquired 270,666,650 MySale, which increased its stake to 28.7% making it MySale’s largest shareholder.

In a statement as part of the announcement, Frasers said: “Frasers Group has ambitions to increase its presence in Australia and the surrounding regions and believes that this can be better achieved via acquisitions than organically.

“Frasers Group’s primary motivation behind the Offer is to increase its presence in Australia and New Zealand, where the MySale business is already established, and to use this as a platform to invest in and develop the Frasers Group and MySale businesses across the region through a combination of the channels that MySale operates and the wider strategic input and resources of Frasers Group.”

It continued: “Frasers Group believes that the MySale business would be complementary to that of the existing Frasers Group (including providing the opportunity to clear end of line Frasers Group products via MySale’s established clearance channel), which Frasers Group and MySale could utilise to grow and develop MySale.

“This pipeline will be further enhanced by the benefits of counter seasonality between the European and Australian climates. Frasers Group intends to seek to develop MySale’s existing network of buyers and sellers and to continue to offer third party brands to MySale members.”

Frasers added the offer “is final” and the offer price will not be increased, except that it “reserves the right to increase the offer price if there is an offer or a possible offer for MySale by a third party”.