Britain’s Frasers in bid to takeover Norway’s XXL ASA

Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Business

Posted By Uma Rajagopal

Posted on December 6, 2024

Britain’s Frasers in bid to takeover Norway’s XXL ASA

LONDON (Reuters) -British sportswear and fashion group Frasers on Friday launched a bid to takeover Norwegian sporting goods retailer XXL ASA, saying it did not agree with the Oslo-listed company’s plan to issue more shares.

Frasers, majority owned by Mike Ashley, said it was offering 10 NOK ($0.9044) a share for the equity it does not own in XXL – a premium of 25% over its closing price of 8 NOK on Thursday and valuing the group at NOK 246.4 million ($22.3 million).

The UK retailer already holds 25.8% of the issued share capital of XXL, which also operates in Sweden, Finland, Denmark and Austria.

“The proposed Alternative Rights Issue is wrong, its legality is questionable and its implementation will be extremely detrimental to both Frasers and the other minority holders,” Frasers said.

It said XXL should not be asking shareholders for further funding when “it has not articulated any clear plan to address and resolve the root causes of its persistent problems.”

Frasers has been expanding overseas with recent deals in the Netherlands, Australia/New Zealand and Africa.

However, on Thursday it cut its profit guidance blaming a drop in consumer confidence caused by the UK government’s budget.

($1 = 11.0411 Norwegian crowns)

(Reporting by James Davey; editing by Jason Neely and David Evans)

Recommended for you