Frasers rules out sweetener for $391M Accent takeover as shares defy bid
What's the deal? UK-based Frasers GroupDealroom has a profile for this one. Try Dealroom → has declared its 65-cents-a-share on-market takeover offer for Australian footwear and apparel retailer Accent GroupDealroom has a profile for this one. Try Dealroom → "best and final," ruling out any increase with three months left before the bid closes. Frasers launched the offer on June 15, 2026, valuing Accent at about $391 million. The price matched Accent's last close before the announcement, so it carried no premium.
Who's involved? Frasers, controlled by UK retail billionaire Mike Ashley, owns brands including Sports Direct. Accent operates banners such as PlatypusDealroom has a profile for this one. Try Dealroom →, Hype DC, SkechersDealroom has a profile for this one. Try Dealroom →, and The Athlete's Foot, ending FY26 with 876 stores and more than 8,600 staff across Australia and New Zealand.
Why now? Frasers says "no competing proposal has emerged in the more than four-month period" since the offer launched, suggesting a rival bid is now unlikely. It held 22.9% of Accent before the bid. If it reaches 90%, it plans to compulsorily acquire the rest, delist Accent, and remove chairman Lawrence Myers.
The sticking point: Accent's independent board committee continues to recommend shareholders reject the offer. The stock has traded at or above the offer price since June 15, touching 79.5c, though Frasers says shares have closed between 65c and 66c since October 7.
What could go wrong? With no premium and the board urging rejection, Frasers may struggle to reach the 90% needed for compulsory acquisition. Investors holding above the offer price have little reason to sell.
Frasers points to earnings pressure to make its case. Accent's FY26 underlying net profit fell 7.8% to $51 million, while a $48.6 million goodwill impairment helped produce a statutory loss. Frasers said Accent "has continued to prioritise shareholder distributions during a period of material earnings pressure, increased borrowings and ongoing growth investment obligations."
The signal: The two firms are already commercial partners, with Accent rolling out Frasers' Sports Direct business across Australia and New Zealand. Control of that growth opportunity lies at the heart of the standoff — and Frasers' "best and final" stance now removes any prospect of a sweetener. The offer closes January 29, 2027.
Read more: businessnewsaustralia.com
Image credit: martinhoward
