Shoe chain tells UK share predator offer is ‘rejected’
Australia’s largest shoe store chain has described as inadequate a takeover attempt by a major British retailer trying to gain more influence over its board.
Frasers Group’s market takeover offer of 65 cents per share valued the owner of The Athlete’s Foot, Platypus and Hype DC at $390 million.
But on Monday, Accent Group told investors not to sell its shares as part of the offer, saying that if they did, they would not see any upside from its ongoing strategy to boost profits.
The independent board also warned that the current offer did not add anything to the share price, which closed at 74 cents on Friday, and was “highly” opportunistic.
“The offer price is materially inadequate and does not appropriately reflect Accent’s strategic position, medium-term growth potential or expected benefits from Accent’s strategic growth plan,” he said.
The plan, announced in May, aims for sales of at least $1.9 billion, 9 percent growth in earnings before interest and tax margin, and the addition of a total of around 930 new stores by 2030.
“The offering is opportunistically timed during a period of cyclical weakness in the consumer discretionary retail sector,” the independent directors said.
Frasers owns UK-based sporting goods giant Sports Direct, which Accent launched with a partnership in Australia in 2025.
The initial plan was to open 50 stores in six years.
However, in May this number was reduced to eight stores by December and to 30 stores within three years.
The 50-store target has been postponed indefinitely, disappointing Frasers’ managers.
When Frasers announced its offer on June 15, finance chief Christopher Wootton said he had significant concerns about Accent’s direction and performance.
“The company’s recent financial performance, capital management and approach to future growth were the catalyst for the decision to launch a takeover bid,” he said in a statement.
Frasers held a 22.9 per cent stake in Accent Group when it made its offer.
The stock was purchased at an average price of 90 cents, according to the latest stock market filings.
There is also a seat on the board of directors.
The Accent was down almost a percent in morning trading to 73.5 cents.
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