Frasers eyes takeover deal of Norwegian sports retailer
Operating 85 stores in Norway, Finland and Sweden, XXL ASA has been dealing with profitability challenges partly due to stock availability issues
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Frasers Group has announced this morning (6 December) its intention to launch a voluntary offer for all shares in XXL ASA, a Norwegian sporting goods retailer, which has a physical and online presence in the Nordics and Australia.
News comes via the Oslo Stock Exchange after Frasers “carefully considered the options available to it” as XXL ASA’s second largest shareholder – holding a 25.8% stake.
The voluntary offer is one that Frasers does not already own, and would be priced at NOK 10 per share in cash. This offer values XXL ASA’s fully diluted share capital at NOK 246,357,450 (£17.45m).
Operating 85 stores in Norway, Finland and Sweden, XXL ASA has been dealing with profitability challenges partly due to stock availability issues.
According to Frasers, it has “the relevant experience to have a chance at saving XXL ASA”.
Michael Murray, CEO of Frasers, said: “Our strategic vision and industry experience position us uniquely to help XXL navigate its current challenges. We are committed to ensuring that XXL reaches its full potential.”
It comes as Frasers lowered its profit guidance for the year by £25m due to a subdued trading environment after H1 sales in its retail division fell 8.4% to £2.45bn.
