Mysale online shop rejects takeover bid by Ashley’s Frasers

ONLINE retailer Mysale has rebuffed a £14m takeover bid from Mike Ashley’s Frasers Group, saying it undervalued its business. The Australian company urged shareholders not to approve a 2p per share offer, while its own chairman Carl Jackson stepped down as he backed Frasers’ bid.

Mysale said the terms were not “fair and reasonable”, noting that price was the minimum the owner of Sports Direct and House of Fraser could have offered under City rules.

Frasers snapped up a 29pc stake in the struggling retailer in June, sending shares up 20pc, and in August it said it was seeking to buy the rest of the stock, valuing Mysale at £13.6m.

The marketplace also counts Sir Philip Green and Boohoo’s co-founder Mahmud Kamani as shareholders.

Mysale argued that Frasers’ bid was at a discount of 26pc to its closing price the day before the sportswear retailer revealed its bid. Mysale ended the week valued at £23.8m.

Frasers has been on an acquisition spree in recent years, buying brands such as Jack Wills and Missguided.