16th May 2019 17:26
LONDON (Alliance News) - Spectre Holdings Ltd on Thursday said it has reviewed the circular sent by Bonmarche Holdings PLC on Tuesday last week, saying it will keep its offer open to shareholders in the fashion retailer until further notice.
Spectre also said it would step back and see if Bonmarche's board can deliver on its plans and strategy, but stated that it "does not believe these plans will deliver value for Bonmarche Shareholders in the medium term".
In April, Bonmarche said the mandatory offer by Spectre Holdings "materially" undervalues the firm and its prospects. In May, Bonmarche released a circular recommending that shareholders reject the offer.
The offer values Bonmarche at GBP5.7 million.
The mandatory offer came after Spectre - a Dubai-registered company 100% owned by Edinburgh Woollen Mill and Peacocks owner Philip Day - acquired 26.2 million shares, giving it a majority 52% stake in the retailer.
So far, Spectre has received 26.4 million shares in valid acceptance including its own stake which reflects 53% of Bonmarche's entire issued share capital.
The offer, which is wholly unconditional, is priced at 11.445 pence per share, a 34% discount to Bonmarche's GBP8.7 million market value the day before the offer was made. Shares in Bonmarche closed 1.0% lower at 15.35 pence on Thursday.
Related Shares:
BON.L