UK-based Frasers Group plc, parent of Sports Direct, has called it quits on its uninvited overture to acquire Norway-based XXL ASA, reported to be the largest sporting goods retailer in the Nordic region.
Frasers made the announcement via the Oslo Stock Exchange, citing the condition requiring acceptance of the Intended Offer by a sufficient number of shareholders to ensure that Frasers would hold over 50 percent of XXL shares and votes on a fully diluted and converted basis would not be satisfied.
Frasers Group announced on December 6, 2024 to the Oslo Stock Exchange that, having considered the options available to it as the second largest shareholder in XXL, it intended to launch a voluntary offer for all of the shares in XXL, which Frasers does not own, at NOK 10 per share in cash.
XXL ASA reports in the Norwegian kroner (NOK) currency.
Frasers reported that it had ~32.5 percent of XXL voting rights and ~25.8 percent of the issued share capital at press time on December 6, 2024. Frasers said the offer valued XXL’s fully diluted share capital at NOK 246,357,450.
Frasers apparently saw the 50 percent hurdle unreachable and pulled the plug.
XXL ASA recently reported total operating revenue of NOK 7.2 billion in 2024 in a Nordic sporting goods market that persisted to be challenging. The company said that record-low inventory had a negative impact on product availability and, hence, on top-line sales growth. Consequently, XXL said it is executing a rights issue of NOK 600 million, with adjustments to its current loan agreements, to support efforts in regaining top-line growth and continue to deliver on XXL’s “Reset & Rethink“ plan. XXL said it sees positive effects of the cost-out program and a strengthened gross margin.
Image courtesy XXL ASA
EXEC: Sports Direct Parent Frasers Makes Play for Nordic Region Sports Retailer
