Frasers Group PLC announced Friday plans to acquire Norwegian sports goods retailer XXL ASA for approximately 246.4 million Norwegian krone ($22.3 million). The deal follows XXL’s failed attempt to secure funding through a 600 million krone rights issue in November.
Terms of the Offer
Frasers, already the second-largest shareholder in XXL, intends to launch a voluntary offer to purchase all remaining shares of the Oslo-listed company at 10 krone per share. This represents a 25% premium over XXL’s closing share price of 8 krone on Dec. 5.
The acquisition is expected to complete by March 2025, subject to regulatory approvals. Legal advice for Frasers is being provided by White & Case LLP and Oslo-based law firm Advokatfirmaet Schjødt AS.
XXL’s Financial Struggles
XXL’s financial troubles intensified after shareholders rejected its proposed rights issue of 600 million krone on Nov. 6. The retailer’s fallback plan, unveiled on Nov. 19, involved creating a new entity to own XXL’s equity and assets, with funding from a rights offering.
