XXL to go ahead with rights issue as Frasers bid unlikely to succeed

(Sharecast News) - Norwegian sportswear retailer XXL said on Friday that it would go ahead with a rights issue as a takeover offer from Mike Ashley's Frasers Group's was unlikely to succeed. London-listed Frasers announced last week that it was launching a voluntary offer for all the shares in XXL that it does not already own at 10 Norwegian kroner per share. The offer values XXL at approximately NOK246.36m.

Frasers is currently the second largest shareholders in XXL with an interest of just under 26%.

XXL said on Friday that its board of directors had discussed the intended offer. After talks with owners representing more than 60% of its shares, "the board is of the view that the intended offer, if made, is not likely to be successful and the company will therefore continue towards implementation of the alternative rights issue," it said.

XXL said the board has decided to call for an extraordinary general meeting on 7 January 2025 "to resolve that the alternative rights issue shall be implemented and that the board and CEO of the company shall be authorised to make any resolutions and take any steps on behalf of the company and its subsidiaries in connection therewith".

Shareholders representing 60.86% of the shares and 51.77% of the votes in the company have undertaken to vote in favour of the resolutions.

XXL has now secured underwriting of the alternative rights issue for up to NOK600m.