(Sharecast News) - Online retailer MySale has rejected a takeover bid from Mike Ashley's Frasers Group, stating it does not consider the terms of the deal to be "fair" or "reasonable".
MySale said that Frasers' offer of 2.0p per share did not reflect "an adequate value or premium" for control of the business and that it "undervalues MySale and its prospects".
The board of MySale, which Frasers already has an almost 30% stake in, has now recommended shareholders dismiss any offer as members will "not accept" it themselves.
MySale also revealed that chairman Carl Jackson had resigned from the group's board, with immediate effect.
MySale stated Jackson, who joined the group in 2009, stood down from the role as a result of "conflicts" arising in his role as a director and his personal position as a "substantial shareholder" in the group.
The AIM-listed group added that following the offer from Frasers and Jackson's immediate resignation, Charles Butler, the senior independent director who was slated to leave the group on 24 September, will now remain with the company until its annual general meeting or on 31 December.
As of 0915 BST, MySale shares had slumped 13.64% to 1.90p.
Reporting by Iain Gilbert at Sharecast.com
