Frasers Group has today announced it is planning to submit a takeover bid for Norwegian sporting goods retailer XXL ASA, in which it already has a 28.5% stake (making it the second largest shareholder).
The Sports Direct owner intends to launch a voluntary offer for all of the remaining shares of Oslo-listed XXL ASA, offering 10 kroner per share.
According to Reuters, that is a premium of over its closing price of 8 kroner on Thursday, 5 December, valuing the group at around £17.45m (NOK 246.4 million).
XXL sells both online and in around 90 stores across Norway, Finland, Sweden, Denmark and Austria, selling a range of products for sports, skiing, biking and other outdoor activities, including sportswear, footwear, health and fitness and sports technology products. The company has several subsidiaries, including XXL Sport og Villmark AS.
Michael Murray, CEO of Frasers Group, said: “Our strategic vision and industry experience position us uniquely to help XXL navigate its current challenges. We are committed to ensuring that XXL reaches its full potential.”
Frasers has recently been ramping up its international expansion, with deals in the Netherlands, Australia/New Zealand and Africa.
However, yesterday it cut its profit outlook blaming ‘weaker’ shopper confidence leading up to and since the government’s autumn Budget.
It came as the Mike Ashley-founded company revealed a slump in sales for the past half-year and lower profits.
The group said it is now on track for adjusted pre-tax profit between £550 million and £600 million for the current year. It had previously predicted it would be between £575 million and £625 million.
