Accent Group rejects Frasers’ ‘materially inadequate’ takeover bid

The Sports Direct owner submitted an offer worth A$316m (£166m) to acquire the remaining shares that it does not own in the firm, which operates Hype, Platypus and Sports Direct Australia.

Accent said the bid represents no premium for the business and was materially lower than the price Frasers paid for its 22.9% of shares in the company.

The firm labelled the timing of the takeover proposal as “highly opportunistic”, noting it was submitted during a period of cyclical weakness in the discretionary consumer retail sector as reflected in the market-wide share price declines over the past 12 months.

Accent said it did not factor in the upside benefits of the initiatives within its strategic growth plan that are in the process of being implemented and “yet to be realised”.

“Frasers is both a substantial shareholder and a commercial counterparty through the Sports Direct arrangement,” it reported. 

“Accent shareholders should consider the risk that Frasers may seek to influence matters where its interests as a commercial counterparty and shareholder are not aligned with the interests of Accent shareholders as a whole.”

The news comes as Frasers is still waiting for a response from Hugo Boss about the takeover it submitted earlier this month.

The Flannels owner issued a statement last week saying its £1.7bn offer for the remaining shares in the premium German fashion brand will not be increased.

Hugo Boss shareholders have a month to decide whether to accept Frasers’ offer for the shares.