Britain's Frasers in bid to takeover Norway's XXL ASA (updated)

Xxl AS

06/12/2024 08:46

(Adds detail in paragraphs 2-7)
       LONDON, Dec 6 (Reuters) - British sportswear and fashion
group Frasers  FRAS.L  on Friday launched a bid to takeover
Norwegian sporting goods retailer XXL ASA  XXL.OL , 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)
 ((james.davey@thomsonreuters.com))