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AX1 Accent News Story

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Morningstar recommends Accent shareholders to ignore Frasers' takeover bid

BUZZ-Morningstar recommends Accent shareholders to ignore Frasers' takeover bid

** Britain's Frasers Group FRAS.L on Monday launched a takeover bid to buy Australian retailer Accent Group AX1.AX

** Offer price of A$0.65 per share equals Accent's closing price on June 12, offering no premium

** Accent advised shareholders in a statement to ignore the offer from Frasers, Accent's top shareholder

** Shares of Accent rallied over 15% on the day, implying expectations of a higher offer from Frasers or other bidders

** Morningstar sees takeover as a mechanism for Frasers to accumulate stock cheaply

** Research firm finds offer significantly undervalued and recommends ignoring it

** 11 analysts, on average, recommend 'hold' on Accent, with median PT at A$0.73, according to LSEG-compiled data

** Accent shares down 20.6% YTD, Frasers up 11.1%


(Reporting by Nichiket Sunil in Bengaluru)

((Nichiket.Sunil@thomsonreuters.com))

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