British tycoon asks Takeovers Panel to intervene in spurned $390 million Accent Group bid

The British retail behemoth run by billionaire Mike Ashley has asked Australia’s Takeovers Panel to intervene in its spurned, low-ball bid for the nation’s biggest footwear retailer Accent Group.

Frasers Group lobbed the unsolicited 65¢-a-share bid last month, valuing the target at $390 million, and saying it had significant concerns about Accent’s performance and strategic direction.

The London Stock Exchange-listed company, which has a 22.9 per cent stake in Accent, has taken aim at its management team, especially chair Lawrence Myers, calling for him to step down.

Accent’s independent board, which excluded Frasers nominee David Forsey, unanimously rejected the offer as way too low.

But on Wednesday, the Australian Government body said it had received an application from Frasers, which submitted that Accent’s responses to the bid did not include clear, soundly based reasons to describe the offer as undervaluing the target.

Frasers wants Accent to lodge a supplementary target’s statement with additional disclosure around its belief that the price is not enough or have an independent expert prepare a report on whether it is fair and reasonable.

The Takeovers Panel said no decision had been made whether to conduct proceedings.

“The Panel makes no comment on the merits of the application,” it said.

Accent, which distributes brands including The Athlete’s Foot and Hype DC, said it would respond to the application in accordance with the panel’s procedures and keep shareholders informed, as obliged.

Frasers has more than 700 stores globally in the massive Sports Direct chain founded by Mr Ashley in 1982, including two run by Accent in Australia. Accent’s plans, announced more than 12 months ago, to open 28 more around the nation within the next three years appears to have stalled.

Frasers says it’s concerns include Accent paying a first half dividend despite a 40.5 per cent year‑on‑year fall in net profit. That was followed by a further earnings downgrade weeks later, prompting Accent shares to slump to a nine-year low of 51¢. The stock has traded above the offer price since the bid was lobbed, within the 70-75¢ range.

Accent disclosed in May that chief executive Daniel Agostinelli, non-executive director Michael Hapgood and an unnamed senior employee were being investigated for suspected insider trading in the company.