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Noni B urges investors to accept takeover


nonibFashion retailer Noni B has warned shareholders they face an uncertain outlook if they fail to take up a $16.4 million takeover offer.

The company’s chairman, Joycelyn Morton, said the 51 cents a share offer from private equity business Alceon Group was in the best interest of shareholders, given the current outlook for the company.

“Beyond the attractive premium, the Noni B board is recommending Alceon Bidco’s offer to shareholders because it provides certainty of value for shareholders in a very difficult retail environment,” she said in a letter to shareholders.

“That value certainty is available to all shareholders at a time when they would otherwise face an uncertain outlook in relation to dividends and the potential capital requirements of the business.”

Meanwhile, Alceon said shareholders who rejected the offer could be disadvantaged in the event the private equity group gained control of the company but fell shy of 100 per cent ownership.

In that scenario, it said minority shareholders may be asked to contribute to planned capital raisings and faced having their holding diluted if they refused to participate.

Alceon also said it is planning to acquire women’s clothing and accessories retail Universal Brands, which operates the Events and Queenspark chains, via Noni B for $1.7 million.

Noni B suffered a $2.1 million loss in 2013/14, with sales down 7.7 per cent.

Alceon executive director, Richard Facioni, has previously said he believes the retailer’s performance can be turned around by returning its focus to its core 50s plus demographic and abandoning a failed push to target younger women.

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