Latest news with #XXLASA
Fashion Network
28-05-2025
- Business
- Fashion Network
Frasers wins control of XXL ASA, unsure if business can be saved
But the company rebuffed Frasers with its board instead opting for a rights issue that the UK company had spoken out against. Then in February, with it being clear that its offer wouldn't succeed, the British firm walked away. However, it participated in the rights issue, which took its stake above 30% and in March said it would make a mandatory offer for the rest of the shares. That brings us to today with Frasers saying acceptances of its offer mean it will end up controlling more than 92% of the share capital and 90% of the voting shares. So what about that announcement that XXL ASA might not survive? In the same stock exchange release that contained the information about its stake, Frasers said: 'Reference is made to XXL's announcement dated 26 May 2025 in respect of XXL's challenging liquidity situation and supply chain delays. Having offered to provide support to help XXL navigate its challenges over the past 18 months, and been rebuffed, this is a situation which Frasers believes could have been avoided. In the meantime, XXL has not been able to execute on its proposed turnaround plan and XXL's financial and trading position has continued to deteriorate.' It added that it's 'acquiring a business which is in significant distress. As such, all stakeholders, including but not limited to, brand partners, landlords, suppliers and partners, will need to work collaboratively with Frasers in its efforts to save the XXL business in its current form. Frasers does not currently have sufficient information to be able to determine how much of a viable proposition XXL in its current form is, and whilst its current intention is to work on stabilising the XXL business, this will be more difficult given the passage of time, and there is no guarantee that XXL can be saved in its current form or at all.' That's worrying news for the aforementioned 'brand partners, landlords, suppliers and partners' although it's unclear how much of that is a warning to encourage a co-operative attitude and how much it might mean that Frasers could shutter the business. We've already seen the UK group being prepared to close retail chains and brands that don't pull their weight — illustrated most spectacularly with its acquisition of Matches and relatively rapid ageing of the luxury webstore. We'll be watching this one very closely.
Fashion Network
28-05-2025
- Business
- Fashion Network
Frasers wins control of XXL ASA, unsure if business can be saved
The UK's Frasers Group has been interested in buying struggling Norwegian sports retailer XXL ASA since last year and despite being rebuffed and walking away before returning to the pursuit, it's now close to achieving its goal. But there was a sting in the tail of the announcement of its majority stake on Wednesday with the company also saying it's unsure whether the business can be salvaged, even though it intends to wor with stakeholders to try. First, some background. Frasers said in December it planned to make an offer to buy all the shares of the troubled business that it didn't already own at a 25% premium to the then-share price, following a shareholder revolt over management's plans to fund a turnaround. But the company rebuffed Frasers with its board instead opting for a rights issue that the UK company had spoken out against. Then in February, with it being clear that its offer wouldn't succeed, the British firm walked away. However, it participated in the rights issue, which took its stake above 30% and in March said it would make a mandatory offer for the rest of the shares. That brings us to today with Frasers saying acceptances of its offer mean it will end up controlling more than 92% of the share capital and 90% of the voting shares. So what about that announcement that XXL ASA might not survive? In the same stock exchange release that contained the information about its stake, Frasers said: 'Reference is made to XXL's announcement dated 26 May 2025 in respect of XXL's challenging liquidity situation and supply chain delays. Having offered to provide support to help XXL navigate its challenges over the past 18 months, and been rebuffed, this is a situation which Frasers believes could have been avoided. In the meantime, XXL has not been able to execute on its proposed turnaround plan and XXL's financial and trading position has continued to deteriorate.' It added that it's 'acquiring a business which is in significant distress. As such, all stakeholders, including but not limited to, brand partners, landlords, suppliers and partners, will need to work collaboratively with Frasers in its efforts to save the XXL business in its current form. Frasers does not currently have sufficient information to be able to determine how much of a viable proposition XXL in its current form is, and whilst its current intention is to work on stabilising the XXL business, this will be more difficult given the passage of time, and there is no guarantee that XXL can be saved in its current form or at all.' That's worrying news for the aforementioned 'brand partners, landlords, suppliers and partners' although it's unclear how much of that is a warning to encourage a co-operative attitude and how much it might mean that Frasers could shutter the business. We've already seen the UK group being prepared to close retail chains and brands that don't pull their weight — illustrated most spectacularly with its acquisition of Matches and relatively rapid ageing of the luxury webstore. We'll be watching this one very closely.
Fashion Network
28-05-2025
- Business
- Fashion Network
Frasers wins control of XXL ASA, unsure if business can be saved
The UK's Frasers Group has been interested in buying struggling Norwegian sports retailer XXL ASA since last year and despite being rebuffed and walking away before returning to the pursuit, it's now close to achieving its goal. But there was a sting in the tail of the announcement of its majority stake on Wednesday with the company also saying it's unsure whether the business can be salvaged, even though it intends to wor with stakeholders to try. First, some background. Frasers said in December it planned to make an offer to buy all the shares of the troubled business that it didn't already own at a 25% premium to the then-share price, following a shareholder revolt over management's plans to fund a turnaround. But the company rebuffed Frasers with its board instead opting for a rights issue that the UK company had spoken out against. Then in February, with it being clear that its offer wouldn't succeed, the British firm walked away. However, it participated in the rights issue, which took its stake above 30% and in March said it would make a mandatory offer for the rest of the shares. That brings us to today with Frasers saying acceptances of its offer mean it will end up controlling more than 92% of the share capital and 90% of the voting shares. So what about that announcement that XXL ASA might not survive? In the same stock exchange release that contained the information about its stake, Frasers said: 'Reference is made to XXL's announcement dated 26 May 2025 in respect of XXL's challenging liquidity situation and supply chain delays. Having offered to provide support to help XXL navigate its challenges over the past 18 months, and been rebuffed, this is a situation which Frasers believes could have been avoided. In the meantime, XXL has not been able to execute on its proposed turnaround plan and XXL's financial and trading position has continued to deteriorate.' It added that it's 'acquiring a business which is in significant distress. As such, all stakeholders, including but not limited to, brand partners, landlords, suppliers and partners, will need to work collaboratively with Frasers in its efforts to save the XXL business in its current form. Frasers does not currently have sufficient information to be able to determine how much of a viable proposition XXL in its current form is, and whilst its current intention is to work on stabilising the XXL business, this will be more difficult given the passage of time, and there is no guarantee that XXL can be saved in its current form or at all.' That's worrying news for the aforementioned 'brand partners, landlords, suppliers and partners' although it's unclear how much of that is a warning to encourage a co-operative attitude and how much it might mean that Frasers could shutter the business. We've already seen the UK group being prepared to close retail chains and brands that don't pull their weight — illustrated most spectacularly with its acquisition of Matches and relatively rapid ageing of the luxury webstore. We'll be watching this one very closely.
RTÉ News
06-05-2025
- Business
- RTÉ News
Norwegian retailer XXL's board recommends shareholders against Frasers' offer
Norwegian retailer XXL ASA's board of directors has recommended its shareholders against accepting a buyout offer from Britain's Frasers, saying that it did not reflect the company's long-term earnings potential. In March, Frasers said it planned to make a mandatory offer for the retailer, just weeks after dropping its bid to buy equity it did not already own in the company. The XXL ASA's board of directors said that the offer does not entail a sufficient premium relative to the current value range of its shares. The board also noted that the relatively low absolute and relative free float of XXL's shares may limit the reliability of market prices as a clear indicator of the company's underlying value. Frasers had been allocated 21.6 million A-shares in XXL's rights issue, and an additional 777,289 A-shares as compensation for the group's guarantee in the issue, XXL said in March, bringing Frasers' total stake to about 32.9% of all shares and 40.8% of the voting A-shares. Frasers, which previously held a 25.8% stake in XXL, launched a bid in December but dropped it two months later, saying that several of XXL's other large shareholders would not accept the offer.
Yahoo
18-03-2025
- Business
- Yahoo
Frasers Group returns for remaining stake acquisition in Norway's XXL
UK fashion conglomerate Frasers Group intends to submit a mandatory offer for Norwegian sports retailer XXL to acquire the remaining shares it does not own. The announcement was made public through communications with both the London Stock Exchange and the Oslo Stock Exchange, following Frasers' acquisition of a controlling interest in XXL ASA. The group announced to the Oslo Stock Exchange: "Frasers Group intends to make a mandatory offer for the shares of the Company [XXL ASA] not owned by Frasers Group as required by the Norwegian Securities Trading Act." The development occurs shortly after Frasers Group retracted a previous bid in February 2025 to purchase additional equity in XXL ASA due to insufficient support from other shareholders. In December 2024, the group proposed an offer that placed the total valuation of XXL at Nkr246.35m ($22.16m), which translated to Nkr10 per share. Frasers Group has received an allocation of 21.6 million A-shares in XXL ASA's fully underwritten rights issue, and 777,289 A-shares as compensation for its guarantee in the rights issue. Frasers Group will therefore hold 28.8 million A-shares, representing 32.9% of all shares in XXL and 40.8% of the voting A-shares once all shares related to the issuance have been issued. This increased ownership stake surpasses the one-third threshold stipulated by Norwegian securities law, thereby obligating Frasers Group to extend an offer for the remaining shares. XXL operates a network of 85 stores across Norway, Sweden and Finland, and an online platform. It employs more than 4,000 people. The company offers products to sports enthusiasts and those involved in outdoor activities such as biking, hunting and skiing. In February 2025, Frasers Group entered a ten-year strategic retail partnership with GMG, a conglomerate specialising in well-being and retail, to introduce the Sports Direct brand in the Middle East and North Africa region. "Frasers Group returns for remaining stake acquisition in Norway's XXL" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
