Frasers Group withdraws offer for Norway’s XXL ASA
Through correspondence with XXL, Frasers has been informed that XXL’s other large shareholders would not accept the intended offer if made
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Frasers Group has announced that it will not proceed with its intended voluntary offer for the shares in Norwegian sporting goods retailer XXL ASA at NOK 10 per share, which valued the company’s fully diluted share capital at NOK 246,357,450 (£17.45m).
News 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.
As a result, Frasers concluded that the condition requiring acceptance of the intended offer by a sufficient number of shareholders to ensure Frasers would hold more than 50% of XXL’s shares and votes on a fully diluted and converted basis would not be fulfilled.
Operating 85 stores in Norway, Finland and Sweden, XXL ASA was dealing with profitability challenges – partly due to stock availability issues – at the time of Frasers’ voluntary offer.
According to Frasers, it had “the relevant experience to have a chance at saving XXL ASA”.
