2nd Apr 2019 09:09
LONDON (Alliance News) - Spectre Holdings Ltd on Tuesday announced a mandatory cash offer for women's clothing retailer Bonmarche Holdings PLC valuing the company at GBP5.7 million.
Spectre, a Dubai-registered company 100% owned by Edinburgh Woollen Mill owner Philip Day, was required to make the bid after acquiring 26.2 million shares and building a majority 52.4% stake in the retailer.
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 Monday's close.
Bonmarche's shares dropped 20% early Tuesday in response, trading at 14.50p each.
The final price to be paid by Spectre on full acceptance of the offer would be GBP2.7 million. It will be covered by a loan made to the company from owner Day on an interest free, no fixed repayment term basis.
After buying the fashion retailer, Spectre would intend to cancel its listing from the London Stock Exchange.
Spectre noted a recent streak of profit warnings and a significant decline in Bonmarche's profitability, including the latest warning of an annual pretax loss between GBP5.0 and GBP6.0 million, stating that it believes it could offer advice, guidance and support.
Spectre said that its owner, Day, "has a successful track record within the retail sector, especially in turnaround and distressed situations".
Bonmarche is not the first fashion retailer Day has lain his eyes on. Back in August he bid to acquire department store chain House of Fraser in a deal thought to be in excess of GBP100 million.
He was however, beaten by Sports Direct International PLC's Mike Ashley, who snatched the struggling company out of administration in a GBP90 million rescue deal.
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