Bidco, a newly formed company owned and controlled by Joshua Alliance, will acquire fashion retailer N Brown for approximately 191 million pounds.
The company has offered 40p per share in cash compared with N Brown’s closing price of 27p yesterday. The Alliance family already owns around 60 percent of N Brown’s total shares.
Bidco said in a statement: “in light of N Brown’s current shareholder structure and very low trading liquidity, and the limited UK fund manager appetite for small cap consumer stocks, the retailer is not benefitting from being listed on the AIM market, while having to bear significant costs associated with its listing.”
On completion of the acquisition, Bidco plans to support N Brown in accelerating its long-term growth potential by providing access to additional capital, expertise and resources.
“Bidco plans to support the existing executive team’s strategy and intends to work with N Brown’s current executive team to develop, enhance and implement that strategy following completion of the acquisition,” the company added.
