Brett Blundy and Ray Itaoui, under BB Retail Capital, have reached 82.83% voting power over Best & Less Group (BLG) with plans to invoke compulsory acquisition and acquire all remaining shares if it reaches 90%.
In a statement to shareholders this morning, the pair suggested that remaining shareholders accept the offer of $1.89 per share.
As BBRC’s voting power exceeds 75% of the BLG Shares on issue, it “intends to investigate steps” to delist the company from the ASX, “irrespective of compulsory acquisition.”
It added that if BLG is removed from the ASX, “the marketability of BLG shares will be significantly reduced and it will be more difficult for BLG shareholders to sell their BLG shares and exit their investment if they wish to do so.”
BBRC now has control of the company and can pass both ordinary and special shareholder resolutions on its own.
“Similarly, if the Company is delisted, the Bidder Group (BBRC) intends to reconstitute the BLG Board, in a manner consistent with BLG becoming an unlisted subsidiary of the Bidder (BBRC), which would include the removal of all independent directors, meaning decisions of the Company would be made by directors solely appointed by the Bidder Group.”
The news comes after BBRC appointed Ray Itaoui as permanent CEO of Best & Less, dropping The Iconic's Erica Berchtold in the process who was expected to commence as CEO from September.