N Brown Group Receives Takeover Offer from Alliance Family

2 min read | October 17, 2024 07:26 AM EDT | By Team Kalkine Media

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N Brown Group Receives Takeover Offer from Alliance Family — Image source: Shutterstock

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Highlights:

Takeover Offer: Joshua Alliance, backed by his father Lord Alliance, has made a 40p per share offer to take N Brown Group private.

Board Support: N Brown’s independent directors plan to unanimously recommend the offer to shareholders, with a share alternative available.

Future Vision: Joshua Alliance believes delisting will help N Brown unlock its growth potential by accessing additional capital and resources.

N Brown Group PLC (LSE:BWNG), the online retail company behind brands like Jacamo and JD Williams, has received a significant takeover offer from a vehicle owned by non-executive director Joshua Alliance. The proposal values the company at £191 million and aims to take the group private.

Joshua Alliance's offer of 40p per share represents a premium over the previous closing price of 27p and the average price of less than 20p over the past year. This bid, backed by his father, Lord David Alliance, who holds a 33.41% stake in the company, has garnered support from the family, which, together with other members, controls 53.4% of N Brown’s shares.

The independent directors of N Brown have expressed their intent to unanimously recommend the offer to shareholders. A share alternative has also been proposed, allowing eligible shareholders to receive unlisted shares in Alliance’s vehicle, ‘Bidco,’ as opposed to cash. Interim chair and CEO Steve Johnson and finance chief Dominic Appleton have agreed to take the share alternative.

Joshua Alliance believes that by taking N Brown private, the company will be better positioned to unlock long-term growth potential, free from the burdens and limitations of its AIM listing. This would allow the company to access additional capital and resources to compete more effectively in its markets.

Joshua, who has been involved with N Brown since 2014 and joined the board in 2020, supports the current management team but views delisting as the most effective route for the company’s future growth. His father, Lord Alliance, co-founder of FTSE 250-listed Coats Group, had previously served as N Brown’s chair for several decades and remains a significant shareholder.

Shares in N Brown surged by 43% following news of the takeover offer, rising to 38.5p on Thursday morning.

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