Frasers Group eyes takeover of Norway’s XXL ASA

In its continued pursuit of international expansion, Frasers Group has announced its intention to make a voluntary offer for all of the shares of Norwegian sporting goods retailer, XXL ASA.

The proposed offer amounts to around 17 million pounds, and is expected to be made through a controlled subsidiary of Frasers, which already owns 25.8 percent of XXL’s share capital. As such, Frasers would acquire XXL’s remaining shares at a price of NOK 10 per share.

The move comes in response to XXL’s plan to proceed with an alternative transaction structure after its shareholders voted against a proposed rights issue of NOK 600 million announced early November.

Frasers said it believed the alternative plan to be “wrong”, however, stating that its “legality is questionable and its implementation will be extremely detrimental to both Frasers and the other minority holders of XXL shares”.

It added that shareholders “should not be asked to provide further funding to XXL when it has not articulated any clear plan to address and resolve the root causes of its persistent problems”.

Noting that XXL was “short of sufficient funds to pay its suppliers”, Frasers said its proposed takeover was a “solution for this cash shortage which also helps with the stock shortage”.

In a regulatory filing, Micheal Murrary, CEO of Frasers, commented: “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.”