Unbound opts for new offer after fresh approach from investment group
Unbound Group, the owner of Skelmersdale-based shoe maker Hotter Shoes, has opted to recommend a new bid, it revealed today (April 12).
It announced on March 28 it was in takeover talks with WoolOvers Group and had given the potential suitor, owned by Scandinavian private equity business Verdane, until April 25, to come up with an offer.
Unbound said it was “minded to recommend” the bid, but in a stock exchange statement today, Unbound said this was no longer the case, after it had received an approach from London-based investment company Marwyn Investment Management on April 5.
In it, Marwyn made an offer to provide a £10m investment via an equity placing at an issue price of 10.5p per Unbound share, which is intended to be a cornerstone to, but not conditional on, a wider equity placing.
In addition, Marwyn proposed that all existing shareholders should have an opportunity to participate in the fundraise.
The proposal was subject to certain terms and conditions, mainly the granting by the Takeover Panel of a waiver of the obligation for Marwyn to make a general offer for Unbound, which would otherwise be triggered by the fundraise, and the approval of Unbound shareholders in a general meeting of the resolutions necessary to implement the fundraise.
In conjunction with the fundraise, Marwyn has also proposed the appointment of two Marwyn representatives to the Unbound board and the creation of an appropriate long term incentive plan.
Unbound acknowledged its previous intention to recommend the WoolOvers proposal, but it said today: “Having carefully considered the merits and conditionality of each proposal, the directors consider the Marwyn proposal to be superior to the possible offer.
“As such, the directors would no longer be minded to recommend such offer and, accordingly, they intend to engage immediately with Marwyn and its advisers with a view to expediting the Marwyn proposal. A further announcement will be made as appropriate.”
The statement said the Unbound announcement had not been made with the approval or agreement of WoolOvers Group.
