Investing.com - Shares in XXL ASA (OL:XXL) soared 36.94% on Tuesday after the UK’s Frasers Group PLC (LON:FRAS) announced plans to make a mandatory offer for the remaining shares of the Norwegian retailer.
This decision follows XXL’s completion of a rights issue of new shares priced at 10 Norwegian kroner each, resulting in Frasers Group gaining control of 28,776,451 shares and an equal number of voting rights, the British company said.
Frasers Group shares rose by 2.08%.
The completion of the rights issue and subsequent registration of the share capital increase have obligated Frasers Group to extend an offer for all outstanding shares of XXL it does not already own, in accordance with the Norwegian Securities Trading Act.
The company did not disclose the exact terms of the mandatory offer.
The strategic move by Frasers Group, a UK-based retail giant, is expected to further consolidate its position in the sporting goods market, where XXL ASA is a prominent player in the Nordic region.