Shore Capital Markets has flagged that Frasers Group's (LSE:FRAS) unconditional cash offer for ASX-listed Accent Group may fall short, with Accent shares already trading at AUD $0.75 against the AUD $0.65 bid price.
The broker notes that Frasers is seeking full ownership of Accent by acquiring the approximately 73% it does not already own, valuing that stake at around AU$316m, and the move follows quickly after Frasers' much larger approach for HUGO BOSS.
It underlines what Shore Cap sees as a continued willingness to deploy meaningful capital into strategic equity investments.
The note doesn't make any rating or price target action, but points to the observation that the market has already priced in a higher offer, and Frasers may need to dig deeper to secure the deal.
