After poor Q1, Bonmarché urges shareholders to accept Philip Day's "Offer"
After poor trading in the first quarter of the new financial year, Bonmarché Holdings Plc has asked the company’s shareholders to accept mandatory cash offer of 11.445 pence per share from Spectre Holdings Limited. The company said in a statement that first quarter was challenging primarily due to continued weakness in the underlying clothing market, and a lack of seasonal weather to counteract it, particularly in June.
The company added that “it is early in the financial year, and the achievement of a PBT result which is in line with the board's expectations is possible, but there is a significant degree of uncertainty attached to this, and risks are more heavily weighted towards the downside.”
Bonmarché takes U-turn on Philip Day takeover offer
Bonmarché’s board of directors is of the view that the offer from Philip Day, sole shareholder of Spectre, does not adequately reflect the potential longer term value of the business. However, it added that “the increase in uncertainty that has developed reflecting the trading and financial position of the business during the first quarter of the financial year makes the certainty represented by the Offer potentially more attractive in the short term.” As a result, the board is now of the view that the terms of the offer are fair and reasonable and has recommended that shareholders accept the offer.
The company’s board believes that once the near term has been weathered, the medium and long term prospects for the Bonmarché business are good