Best & Less’ largest shareholder is likely to accept a $1.89 a share takeover bid for the retailer.
The proposal, made by retail investor Brett Blundy and iRetail owner Ray Itaoui, is 4.5 per cent lower than the $1.99 closing price for the company — and considerably less than its IPO first-day closing price of $2.40 in July 2011.
Despite the modest discount, the offer is supported by Allegro Funds, who hold 32.4 per cent of Best & Less, and the retailer’s chair and former CEO, Jason Murray, who holds 8.27 per cent.
Blundy currently holds 16.45 per cent of the company, meaning he will control 57.55 per cent if the deal goes through.
Allegro bought the retailer from Greenlit Brands in late 2019, and listed it in 2019, reducing its holding from 64.4 per cent to 43.5 per cent, which it further cut to 32.4 per cent last August — with the sell price then sitting at $2.30 a share.
Best & Less puts in just $13.7 million net profit after tax for the last six months of 2022.
Best & Less’s board has called in E&P Advisory and law firm Ashurst for advice, according to the AFR.