Directors on the board of Accent Group have put themselves up for voluntary re-election before the company’s shareholders in the wake of ongoing pressure by Mike Ashley’s Frasers Group.
The UK-based retailer launched an offer to Accent shareholders to purchase all ordinary shares at a price of 65 cents per share in mid-June. Accent has repeatedly told shareholders not to respond to the unsolicited offer.
Part of Frasers’ criticism levied against Accent has been the leadership of its board. Its director Christopher Wootton said that the strategy of Accent chairman Lawrence Myers and the management team is cause for “significant concern”.
Accent Group’s leadership is now seeking the mandate of its shareholders to continue to run the ASX-listed retailer by putting their positions on the ballot at the upcoming AGM. All board members apart from CEO and MD Daniel Agostinell and Frasers’ own board nominee David Forsey will stand for re-election.
“By voluntarily standing for re-election, we are putting the question of board composition directly where it should be: in the hands of shareholders,” Lawrence Myers said.
“Frasers has had ample opportunity to put its case to Accent shareholders through its offer and has failed to attract meaningful support. This action enables all shareholders to directly decide how they want their company to be run.”
Accent has also accused Frasers of planning to cancel dividend payments “for the foreseeable future” if it were to take over, part of an ongoing plea for shareholders not to sell their shares.
“Whilst Frasers has offered plenty of criticism, as part of its takeover offer and attempts to obtain greater influence over Accent, it has offered no detailed alternative strategy for the company, beyond a series of criticisms and proposed changes,” Myers added.
“Frasers is not a neutral commentator. It is both the bidder for Accent and a commercial counterparty under the Sports Direct strategic partnership. Its interests may not always align with those of Accent Shareholders as a whole.”
The voting will take place on Friday, November 20.
