N Brown, a prominent home shopping group, is poised to be taken private by the Alliance family with a substantial £191m offer.
- Joshua Alliance, as a non-executive director, has made the offer through Falcon 24 Topco at 40p per share, surpassing recent share prices.
- The Alliance family already controls approximately 60% of N Brown, making the deal highly likely to proceed.
- Concerns over N Brown’s low trading liquidity and limited investor interest underline the rationale for this acquisition.
- Independent directors of N Brown have expressed their intent to recommend this offer, citing benefits for stakeholders.
N Brown is set to transition from public to private ownership following a significant £191 million offer from the Alliance family. This strategic move seeks to capitalise on the extensive history and investment the Alliance family has in the home shopping group.
Joshua Alliance, a non-executive director of N Brown, has proposed the purchase through Falcon 24 Topco. The acquisition offer of 40p per share represents a premium over the company’s recent share prices, which closed at 27p and averaged under 20p in the past year. This offer underscores the family’s commitment to the company and its future.
The Alliance family currently holds a controlling interest of about 60% in N Brown. Given this majority ownership, the success of this acquisition is reportedly almost assured. The family’s continued investment highlights their long-standing support and involvement in N Brown’s strategic direction.
In a statement, the Alliance family highlighted concerns about N Brown’s low trading liquidity and the minimal investor interest in small-cap consumer stocks on the AIM market. They noted that the company is not reaping the benefits of its listed status and is incurring significant costs as a result. As such, they argue that the transition to private ownership will facilitate necessary growth and efficiency.
The independent directors of N Brown have indicated their unanimous support for the cash offer. They believe the transaction will enable accelerated growth for the company, benefiting all stakeholders involved. Joshua Alliance expressed enthusiasm for the potential opportunities this transaction could unlock, particularly through leveraging N Brown’s established fashion brands and a robust financial services platform.
The acquisition by the Alliance family is poised to guide N Brown towards a new phase of growth and innovation in private hands.
