Bonmarché board issues response to full takeover offer

Bonmarché board issues response to full takeover offer

The board of Bonmarché has said the proposed full takeover offer by a company controlled by the owner of The Edinburgh Woollen Mill Group "materially undervalues" the listed womenswear fashion chain.

Earlier this month (2 April 2019), Spectre Holdings acquired about 26.2 million shares in Bonmarché Holdings from BM Holdings at a price of 11.445 pence per share, taking its interest in the group to 52.4 per cent.

Spectre is a Dubai-registered entity incorporated in March 2017 and is 100 per cent owned by Philip Day, the founder and owner of The Edinburgh Woollen Mill Group.

Under Rule 9 of the Takeover Code, Spectre is required to make a mandatory cash offer for the remaining shares at the same price. The offer values the entire issued share capital of Bonmarché at about £5.7m.

The retailer's board has now issued a response, saying the offer "materially undervalues Bonmarché and its future prospects".

The board said it had plans in place for a number of cost reduction measures across the group, which it intend to implement shortly. It added that it was seeking "positive engagement" with Philip Day to discuss the future plans for the business "for the benefits of all stakeholders".

The Bonmarché board added that it would issue a formal response to the mandatory cash offer once the offer document has been posted by Spectre and, in the meantime, advised shareholders to take no action.