Ted Baker PLC (LSE:TED) directors have agreed a £211mln cash takeover offer from Authentic Brands Group, the owner of Reebok and Sports Illustrated.
Shareholders in the London-listed fashion brand will receive 110p per share under the terms of the deal, which appears to conclude a sale process that has been going on since the spring.
The agreed "final offer" price is a premium to Monday's closing price of 93.10p but is below the 130p and 137.5p offers the board rejected in March and is a fraction of the shares' market value in early 2019 and before, when they topped 1,500p.
However, the offer is supported by Ted Baker shareholders, including directors, who control roughly 50.7% of the shares.
Back in March, directors rejected two unsolicited bids from private equity firm Sycamore Partners, saying they “significantly undervalued Ted Baker and failed to compensate shareholders for the significant upside that can be delivered”.
In April the retailer launched a formal sale process, in which Sycamore refused to engage.
It appeared close to wrapping up a deal in June, but at the final hurdle its selected suitor also decided to walk away, which the retailer insisted was not linked to the two weeks it had spent conducting a due diligence review.
Following this rejection, the clothing brand is thought to have returned to Authentic Brands, one of its spurned suitors.
In a statement this morning, interim chair Helena Feltham said the board "believes the offer, which is supported by Ted Baker shareholders with a majority of shares, represents a fair value for shareholders and balances the company's growth prospects with the risks of the uncertain economic environment in which the business is operating".
The deal will be implemented by means of a court-sanctioned scheme of arrangement.