Frasers asks Takeovers Panel to intervene in Accent Group bid

• Frasers Group has applied to Australia's Takeovers Panel to intervene after its $390 million takeover bid was rejected by Accent Group.
• The application follows a sharp drop in Accent Group shares to a nine-year low of $0.51 after a recent earnings downgrade.
• Frasers Group seeks additional disclosures or an independent expert report regarding Accent Group's claims that the $0.65-per-share offer is too low.

Frasers Group has requested Australia's Takeovers Panel to intervene in its rejected $390 million unsolicited takeover bid for footwear retailer Accent Group (ASX:AX1).

The independent board of Accent Group unanimously rejected the $0.65-per-share offer last month, describing the bid as an undervaluation of the target business.

Frasers Group, which already holds a 22.9% stake in Accent Group, submitted that the target company's responses did not include clearly disclosed or reasonable grounds to describe the offer as insufficient.

The UK-based company stated it has significant concerns regarding the strategic direction of the retailer, noting that Accent Group paid a first-half dividend despite a 40.5% year-on-year drop in net profit.

Following the announcement, the Accent Group share price was unchanged at $0.51.

The Takeovers Panel confirmed it has received the application but noted that a sitting panel has not yet been appointed and no decision has been made on whether to conduct formal proceedings.

Accent Group distributes major retail brands, including The Athlete's Foot and Hype DC, and the company stated it will respond to the application in accordance with the regulatory panel's procedures.