The Very Group recently proposed a takeover bid for N Brown, preceding a family buyout.
- This approach by Very Group was a preliminary move reported by Sky News.
- The offer came before a 40p per share bid by N Brown’s non-executive Joshua Alliance.
- Market response saw N Brown’s shares surge by 40% following the £191 million offer acceptance.
- Frasers Group, holding a 20.3% stake in N Brown, supports the Alliance family acquisition.
The Very Group’s attempt to acquire N Brown was a notable occurrence, as it took place just before the family-driven acquisition of the company. The preliminary takeover proposal was reported by Sky News to have been made several weeks prior, highlighting its strategic timing.
Sources have indicated that the offer from Very Group was below the 40p per share bid recently put forth by N Brown’s non-executive Joshua Alliance. This bid was significant as it was part of a recommended £191 million offer that subsequently led to a substantial increase in the value of N Brown’s shares, which rose by 40% to reach 38p each.
The approach by Very Group forms part of a broader strategic review. The online retailer has engaged prominent financial institutions such as Barclays, JP Morgan, and Morgan Stanley to manage this review, potentially culminating in a decision to sell the business. This move underscores Very Group’s interest in reevaluating its market position and future growth strategies.
In a related development, Frasers Group, holding a substantial 20.3% stake in N Brown, has shown support for the acquisition by the Alliance family. The group has expressed its anticipation of establishing a strategic relationship with Joshua Alliance, reflecting its confidence in the direction this acquisition might steer the business.
These events are occurring during a period of heightened activity within the retail sector, with various companies navigating acquisitions, strategic reviews, and market repositioning.
The series of acquisitions and strategic movements position N Brown at a pivotal junction within the retail landscape.
