Victoria's Secret adopts 'poison pill' after Australian billionaire's firm raises stake
Victoria's Secret adopted a shareholder rights plan on Tuesday, after Australian billionaire Brett Blundy's investment firm increased its stake in the lingerie maker.
The 'poison pill' plan, known as a limited-duration shareholder rights plan, was adopted to "guard against tactics to gain control of the company without paying all shareholders an appropriate premium for that control," Board Chair Donna James said.
Shares of Victoria's Secret were marginally higher at $22.87 in early trading.
Under the plan, Victoria's Secret said it will issue one right per share on May 29, which would become active only if a shareholder acquires a 15% or more stake.
Blundy-controlled BBRC International Private Limited has increased its stake in Victoria's Secret since March, the apparel maker said. As of April this year, the investment firm holds about 10.31 million shares, or about a 13% stake in the lingerie maker.
BBRC bought Victoria's Secret shares for nearly three years without the required filings, which was in violation of U.S. antitrust rules, the specialty retailer said.
The investment firm has now corrected its paperwork, which will enable it to acquire up to 49.99% of voting stock once a mandatory waiting period ends at 11:59 p.m. ET on May 21, Victoria's Secret added.
Victoria's Secret's poison pill comes at a time when the lingerie maker has been grappling with tepid demand, as consumers avoid expensive purchases amid rising tariff uncertainty and fears of an economic recession.
BBRC, which recently launched a new lingerie and beauty business, has a history of taking control of retail brands, Victoria's Secret said.
Blundy's investment firm has also backed consumer companies such as shoe brand Bared Footwear and Oz Hair & Beauty.
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