N Brown is on course for privatisation following a £191 million bid by the Alliance family.
- The offer was made through Falcon 24 Topco at 40p per share, a notable increase over previous prices.
- Current Alliance family ownership of 60% makes the acquisition highly likely to proceed.
- Challenges such as low trading liquidity and listing costs underline the decision to go private.
- Independent directors of N Brown intend to support the offer, enhancing long-term growth potential.
N Brown is set to transition into private ownership as the Alliance family, with historical ties to the company, extends a recommended offer valued at £191 million. This strategic bid, executed via Falcon 24 Topco, prices shares at 40p, reflecting a substantial premium over the firm’s recent market rate of 27p and its yearly average of under 20p.
The Alliance family’s substantial 60% shareholding in N Brown largely assures the bid’s success. The move addresses critical issues identified by the Alliance family, including very low trading liquidity and a limited appeal for small-cap consumer stocks listed on the AIM market. The family argues that public listing no longer benefits the group, while maintaining its listed status incurs significant costs.
N Brown’s directors, appreciating the potential for enhanced growth, have decided to endorse the cash offer. It promises to facilitate access to essential resources, capital, and expertise, shifting the business focus away from public scrutiny to foster a more conducive environment for growth.
Joshua Alliance, currently a non-executive director who has been associated with N Brown since 2014, and his father, Lord Alliance, who has deep-rooted connections having chaired the firm from 1968 to 2012, express optimism about leveraging the company’s established brands and innovative financial services. This evolution aims to solidify N Brown’s market standing and realise its growth ambitions.
Leading the communication, Joshua Alliance stated, “My family have been supporters of N Brown for over half a century, providing capital and having been involved in the strategic leadership of the business. I am delighted to continue that history. ” Additionally, N Brown CEO Steve Johnson acknowledged the strategic advantages of the takeover proposal, which aligns with the broader goals of benefiting stakeholders and accelerating the existing business strategy.
This acquisition marks a pivotal shift for N Brown, aligning its operational strategy with long-term growth prospects.
