MySale’s directors have recommended shareholders reject the Frasers offer.

Frasers Group’s £14-million offer to buy MySale has been rejected, with the latter saying the offer is too low at two pence per share. Frasers Group said it wants to acquire MySale to complement its existing offering, while MySale said no discussions on commercial collaborations have taken place. The group acquired a near 29 per cent stake in MySale in June.

MySale operates in Australia and New Zealand. Frasers Group owns retailers like Sports Direct, House of Frasers and Evans Cycles.

In August, Frasers initiated a bid to take full ownership of MySale. At two pence per share, it valued the MySale share capital Frasers does not own at £13.6 million, and valued all of MySale’s equity at £19 million.

“The MySale directors are of the view that a price of 2 pence per MySale share does not reflect an adequate value or premium for control of MySale and therefore undervalues MySale and its prospects,” MySale said.

Fibre2Fashion News Desk (DS)