After engaging in discussions with owners representing more than 60 percent of the Company’s shares, the board believes that the intended Offer, if made, is unlikely to be successful. Therefore, the Company will proceed with the implementation of the Alternative Rights Issue,” the company stated.
XXL has now secured guarantee commitments for the alternative rights issue up to a maximum amount of 600 million Norwegian kroner. Furthermore, they have also agreed with the guarantors that the subscription price will be 1.65 Norwegian kroner per share.
An extraordinary general meeting will take place on January 7.
XXL has been in discussions with Frasers since September, and the parties have not reached an agreement.
XXL’s Chairman, Håkan Lundstedt, emphasizes that despite a challenging market for sports and outdoor products, the company continues to work on streamlining operations and strengthening its commercial offering. By securing new financing, combining short- and long-term bank loans with a new share issue, XXL hopes to grow and gain market share in a Nordic market expected to recover. Lundstedt also expresses gratitude for the ongoing support from shareholders and banks, highlighting the company’s long-term potential.
“In the implementation of our Reset & Rethink plan, we have reached significant milestones and made important changes to our concept and operations, and now we are ready and eager to take the next step by further strengthening our inventory with popular brands and products that our customers want, at even lower price points but still with a good-better-best price ladder. However, I already feel that our stores are well-stocked with great brands, products, and prices, and that we are back in better shape than ever,” stated XXL’s CEO, Freddy Sobin.
By securing funding and implementing strategic changes, XXL is positioning itself for growth and success in a challenging market environment. The company’s commitment to innovation and customer satisfaction sets it apart in the competitive landscape of sports and outdoor retail. With a strong leadership team and a clear vision for the future, XXL is poised to capitalize on emerging opportunities and deliver value to its stakeholders.