N Brown Group gains FCA approval for its £191m take-private deal.
- Joshua Alliance, a key figure in the company, drives the acquisition.
- The deal involves acquiring remaining shares controlled by the Alliance family.
- Shareholders offered 40p per share or an unlisted Bidco share.
- The acquisition fulfills a strategic move due to low trade liquidity.
N Brown Group has successfully received approval from the Financial Conduct Authority (FCA) for a £191 million take-private acquisition, marking a significant step forward for the retailer. This deal comes as a result of an agreement made on October 17 between N Brown’s independent directors and Bidco, a company controlled by Joshua Alliance, who is both the non-executive director and the fourth-largest shareholder of N Brown.
The acquisition signifies a pivotal moment for Joshua Alliance, as the Alliance family, holding 53.4% of the shares, will now obtain the remaining shares. By meeting the regulatory condition set by the FCA, N Brown and Bidco expressed their satisfaction with the necessary approval that allows them to advance with their strategic plans. The anticipated Court Sanction Hearing and Effective Date are scheduled for February.
Under the terms of this acquisition, shareholders of the Jacamo and Simply Be owner will receive 40p per share in cash. Alternatively, shareholders have the option to acquire one unlisted ordinary share in Bidco for each N Brown share they possess. The move is also of interest to Mike Ashley’s Frasers Group, which holds a 20.3% stake in the company.
Joshua Alliance’s involvement with the board dates back to December 2020 when he joined alongside his father, Lord Alliance. With a current stake of 6.6%, Joshua is now set to gain full control over the remaining share capital, positioning the company to potentially benefit more from private ownership.
Bidco has highlighted that the retailer’s current shareholder structure and low trading liquidity have been detrimental, resulting in substantial expenses tied to being publicly traded. Thus, the acquisition is perceived as a strategic shift aimed at enhancing operational efficiency and financial stability.
The approval of N Brown’s acquisition marks a strategic transition from public to private ownership, potentially streamlining operations.
