For weeks, the board of directors of the Australian e-commerce specialist MySale Group Plc had advised its shareholders not to respond to the takeover bid by the British trading group Frasers Group Plc. But on Wednesday, management changed its stance. While the board of directors continues to believe that the two pence per share offer “undervalues” the company, in light of recent developments they are now recommending that shareholders accept it, MySale said in a statement.
The reason for the change of heart was that the Frasers Group has already secured almost 49 percent of MySale shares with its takeover bid. This gives the group practical control over the company and will be able to determine the strategy, important personnel decisions and the financial structure in the future, MySale admitted. The foreseeable ownership structure also made it difficult for the other shareholders to sell their shares at a reasonable price in the future. From these points of view, the Frasers Group’s offer is now “the best opportunity for the foreseeable future” for shareholders to derive financial benefit from their shares, the company said.
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