WoolOvers won't buy Hotter owner as Unbound says Marwyn proposal is better

A potential deal for WoolOvers to buy Hotter owner Unbound Group won’t be happening. The knit and jersey specialist has backed away from a possible almost-£7 million takeover.

Unbound had revealed the possible £6.8 million takeover approach in late March and that drove the slumbering Unbound share price to almost double.

So where does that leave Unbound? Well, it seems it has found a better option. This month, it received a proposal from Marwyn Investment Management LLP offering to provide a £10 million investment via a share placing at an issue price of 10.5p per Unbound share.

It said this “is intended to be a cornerstone to, but not conditional on, a wider equity placing”.

The Unbound board also said it had been minded to recommend the WoolOvers offer but “having carefully considered the merits and conditionality of each proposal, the directors consider the Marwyn proposal to be superior”. So it decided against recommending the WoolOvers offer.

Unbound has struggled in recent periods and had warned that losses are likely to be higher than previously forecast with H2 trading conditions proving challenging.