The Very Group recently approached N Brown with a takeover proposal, sparking interest in the ecommerce sector.
- The approach occurred shortly before N Brown accepted a buyout offer from a member of its founding family.
- N Brown’s shares increased by 40% to 38p after the announcement of the recommended £191m offer.
- The Very Group is conducting a strategic review, possibly resulting in the sale of its business.
- Frasers Group, holding a significant stake in N Brown, has endorsed the Alliance family’s acquisition.
The competitive dynamics within the ecommerce sector have intensified as The Very Group submitted a takeover proposal to N Brown. This move came just before N Brown, the owner of Simply Be and Jacamo, accepted a buyout offer from one of its founding family’s members. The bid from The Very Group was reported by Sky News to have been below the 40p per share offer recently put forward by N Brown’s non-executive, Joshua Alliance.
Following the announcement of the recommended £191 million offer, N Brown’s market shares surged by 40%, reaching 38p per share. This notable market reaction underscores the significance of the acquisition deal.
Simultaneously, The Very Group has initiated a strategic review enlisting Barclays, JP Morgan, and Morgan Stanley. This review might culminate in selling the business, revealing an ongoing re-evaluation of its strategic options in the competitive ecommerce landscape.
Backing the acquisition by the Alliance family, Frasers Group, which holds 20.3% of N Brown’s shares, expressed its anticipation of forging a strategic relationship with Joshua Alliance. This development highlights the intricate network of affiliations within the retail sector, potentially influencing future business strategies.
The unfolding events around N Brown and The Very Group indicate significant strategic shifts within the ecommerce industry.
