Having now read in more detail the offer, it looks like Fraser Group, who have partnered with Accent to bring the Sports Direct brand into Australia are very unhappy with the current management (in their dealing with them, performance to date and future plans). They have 1 board seat and if they increase their holding to 26% then they can get another and start pushing the board in the direction they think it should go. That said they say they are happy to buy the whole company if they reach 90% by the offer close date of 31 July.
So, there is a $0.65 price floor on Accent until the offer closes, not surprising the price is trading above the offer.
Fraser Group is right to criticise the performance, as I noted in my straw on “is there value”, management have grown the business but failed to increase EPS (ie shareholder returns have been missing). Fraser group also point out the continued payment of dividends has been inappropriate in the face of a worsening balance sheet with the company unable to generate real cash returns for a long time.
Being a relatively new investor at $0.60 I will probably look for an exit for a small profit. My thesis was that even in the face of poor growth and performance there was value at that price, but we may have some turmoil before that value is realised and the upside Vs risk is looking less compelling.
I look forward to reading others views and reading more on this before making any decisions.
Good point @UlladullaDave, the floor price may effectively rise if they chase the 3% they need.
Disc: I own RL