Frasers Group PLC (LSE:FRAS) intends to launch a voluntary offer for all shares in Norwegian sporting goods retailer XXL at 10 Norwegian kroner (NOK) per share.
The proposed acquisition, if completed, values XXL at approximately NOK 246.36 million (£17.5 million), offering a 25% premium over the company’s closing share price on 5 December.
Frasers currently holds around 32.5% of the voting rights and 25.8% of the issued share capital in XXL.
The group has expressed concerns regarding XXL's ongoing financial challenges and the potential dilution of shareholder value under proposed rights issue structures.
"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," said Michael Murray, chief executive of Frasers.
The offer includes measures to address XXL’s liquidity and stock shortages.
Subject to successful completion, Frasers is prepared to consign up to NOK 500 million worth of stock to XXL on a delayed payment basis, supporting the retailer’s operations without immediate repayment.
The transaction is subject to regulatory and shareholder approval.