Frasers Group today announced its intention to make a voluntary offer for all outstanding shares in XXL ASA. The move will further consolidate Frasers’ position as a major shareholder in the Norwegian retailer. The offer, priced at NOK 10 (€0.85) per share, values XXL’s fully diluted share capital at approximately NOK 246.3 million (€20.88m).
The proposed acquisition is the latest strategic move by Frasers Group, currently, XXL’s second-largest shareholder, to expand its retail influence. Michael Murray, CEO of Frasers Group, said that the company’s industry experience and strategic vision make it well-placed to support XXL through its current challenges and unlock the company’s full potential.
Just one week ago, at an extraordinary general meeting of XXL, Frasers Group stopped the company’s attempt to raise NOK 600 million (€60m) to end an acute liquidity crisis.
Frasers Group does not believe that shareholders “should be asked to provide additional funding to XXL when no clear plan has been formulated to address and resolve the root causes of its persistent problems,” writes UK-based Frasers Group in a stock exchange release.
The announcement of the offer follows careful consideration by Frasers Group of its options regarding its investment in XXL. It represents a significant step in the retail industry as Frasers Group continues to position itself as a key player in the market.
Details of the offer, including the proposed timing and terms, have not been disclosed beyond the initial announcement. It is also subject to regulatory approvals and other customary conditions. Frasers Group has made it clear that the announcement does not constitute an investment recommendation and that interested parties should seek independent financial advice.
Frasers Group’s announcement is based on a press release and has not been independently verified. It is for informational purposes only and does not constitute an invitation or offer to purchase or sell any securities. The company disclaims any responsibility for any person accessing the announcement in violation of any law or regulation.
