Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Frasers Group has confirmed it intends to make a mandatory offer for Norwegian sporting goods retailer XXL ASA, despite withdrawing its offer to buy more shares in the group only last month. Frasers has now been allocated 21,637,943 of shares of XXL’s rights issue, while 777,289 shares will be issued as compensation for Frasers Group’s guarantee in the issue.
Following the move, Frasers will own a total of 28,776,451 shares in the group, or 32.9% of all shares and around 40.8% of the voting shares.
This means that Frasers’ shares will cross the 1/3 threshold under the Norwegian Securities Trading Act, which triggers an obligation to make a bid for the remaining shares in the company.
Last month, Frasers said it would not proceed with its intended voluntary offer for the shares in the retailer at NOK 10 per share, which valued the company’s fully diluted share capital at NOK 246,357,450 (£17.45m).
It comes after Frasers initially revealed its voluntary offer for all shares in XXL ASA on 6 December 2024.
However, the intended offer was subject to several conditions, and Frasers “reserved the right to not proceed” if it became evident that any of the specified conditions would not be fulfilled.
Through correspondence with XXL, Frasers said it was informed that XXL’s other large shareholders would not accept the intended offer if made.
