Norwegian Retailer’s Other Shareholders Reject Frasers’ Offer

  • Frasers Group withdraws its offer for Norwegian sporting goods retailer XXL ASA
  • Offer valued the company’s fully diluted share capital at NOK 246,357,450 (£17.45m)
  • Conditions not met due to other large shareholders’ unwillingness to accept offer
  • XXL ASA operates 85 stores in Norway, Finland, and Sweden

Frasers Group has decided not to proceed with its intended offer for Norwegian sporting goods retailer XXL ASA at NOK 10 per share, valuing the company’s fully diluted share capital at NOK 246,357,450 (£17.45 million). The decision comes after Frasers initially revealed its voluntary offer for all shares in XXL ASA on December 6th. However, the acquisition was subject to several conditions, and Frasers reserved the right not to proceed if any of these conditions were not met. Through correspondence with XXL, Frasers learned that other large shareholders would not accept the intended offer. As a result, Frasers concluded that the condition requiring acceptance by a sufficient number of shareholders to ensure it would hold more than 50% of XXL’s shares and votes on a fully diluted and converted basis would not be fulfilled. XXL ASA operates 85 stores in Norway, Finland, and Sweden, facing profitability challenges due to stock availability issues at the time of Frasers’ voluntary offer.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Frasers Group’s decision not to proceed with its intended offer for XXL ASA shares due to conditions not being met. It also explains the reasons behind the decision, including the challenges faced by XXL ASA and Frasers’ belief in their ability to help the company. The article is informative without any significant issues related to digressions, sensationalism, redundancy, or bias.
Noise Level: 3
Noise Justification: The article provides relevant information about a business decision made by Frasers Group regarding its intended voluntary offer for XXL ASA shares. It explains the reasons behind the decision and gives context on the challenges faced by XXL ASA. The content is focused and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Frasers Group’s decision not to proceed with its voluntary offer for Norwegian sporting goods retailer XXL ASA, which impacts the financial markets as it involves a potential acquisition of another company. The financial relevance lies in the monetary value of the intended offer (NOK 10 per share) and the impact on XXL ASA’s shares.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk