Frasers Group signals all-cash bid for Revolution Beauty
Mike Ashley’s Frasers Group has said that any bid for troubled cosmetics retailer Revolution Beauty would be all cash.
Mike Ashley’s Frasers Group has said that any bid for troubled cosmetics retailer Revolution Beauty would be all cash.
In a stock exchange filing released this morning (10 June), the Sports Direct owner stated it is participating in the sale process announced by Revolution Beauty on 21 May.
However, Frasers cautioned there is “no certainty that an offer will be made” or on what terms any such offer might come.
The filing reads: “It is currently contemplated that any offer for the issued and to be issued share capital of Revolution Beauty would be all cash. There can be no certainty that an offer will be made for Revolution Beauty nor as to the terms on which any offer might be made.”
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Revolution Beauty, which has struggled over the past year with a 70% slump in share price, accounting probes and boardroom disputes, announced last month it was exploring strategic options including a potential sale. Its market value now stands at around £20m.
Shares in the AIM-listed beauty brand jumped nearly 10% after news of Frasers’ involvement emerged, highlighting market optimism over the possible deal.
The deadline for bids is 11 June.
Frasers, led by CEO Michael Murray, has recently expanded its presence in beauty and digital retail, including stakes in LookFantastic owner THG.
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