Frasers Group has declared that it will make a voluntary offer for all of the shares of Norwegian sporting goods retailer XXL ASA as part of its ongoing efforts to expand internationally.
It is anticipated that Frasers, which now holds 25.8 per cent of XXL’s share capital, will make the proposed bid, which is valued at about US $ 21.72 million.
The action follows XXL’s intention to move forward with a different transaction structure following the rejection by its shareholders of a proposed US $ 54 million rights issue that was announced in early November.
The alternative proposal is “wrong,” according to Frasers, but its legality is questionable, and its implementation will be extremely detrimental to Frasers and the other minority holders of XXL shares.
The statement went on to say that since XXL has not presented a clear plan to address and remedy the underlying reasons of its ongoing issues, shareholders shouldn’t be expected to give it more money.
Frasers stated that their proposed takeover was a “solution for this cash shortage which also helps with the stock shortage,” pointing out that XXL was “short of sufficient funds to pay its suppliers.”
