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(Sharecast News) - Shares in Frasers fell on Monday as the Sports Direct owner said it had launched a bid to buy Australian footwear retailer Accent Group for £166m.
The company, which already owns a 23% stake in the retailer, is offering 65 Australian cents a share for Accent, which operates more than 800 stores across Australia and New Zealand under banners including Hype DC, Platypus, Skechers and The Athlete's Foot.
Shares in Accent surged to a high of 75 cents after the bid was tabled and the board advised shareholders to take no action, noting that the deal offered no premium to the company's closing price on June 12. Frasers Group shares were down 4% in London in a rising market.
It added that Frasers' own substantial holding notice discloses that its last on-market purchases of Accent shares occurred between 3 February 2026 and 5 February 2026, at average prices above AUD $0.90 "which is materially above the offer price".
The bid is the second in a week from Frasers, owned by billionaire Mike Ashley, after announcing a £1.73bn offer for German fashion house Hugo Boss.
Accent last year secured a deal last year with Frasers to launch and operate the Sports Direct retail business in Australia and New Zealand.
In a letter to Accent shareholders Frasers said that it was a "great believer in the strength sold through Accent's retail network" and was "highly confident in the long-term potential of the brands in the Australian market".
However, it added that it had "significant concerns" around capital allocation priorities "at a time of material earnings pressure", including decisions to prioritise shareholder distributions, increased borrowing and ongoing growth investment obligations.
Accent shares have fallen by about a fifth so far this year and Frasers took aim at chairman Lawrence Myers, saying he had "failed to provide the leadership necessary to steer Accent thought its recent period of poor financial performance and should step down".
Reporting by Frank Prenesti for Sharecast.com
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