The Board of Directors of Norwegian sports retailer XXL has held talks with its owners regarding a possible offer from British Frasers.

"Following discussions with shareholders representing more than 60 percent of the shares in the Company, it is the opinion of the Board that the intended Offer, if made, is unlikely to be successful and the Company will therefore proceed towards the completion of the Alternative Rights Issue", the company said in a statement.

XXL has now secured underwriting commitments for the Alternative Rights Issue up to a maximum amount of NOK 600 million. Furthermore, it has also been agreed with the underwriters that the subscription price will be NOK 1.65 per share.

An extraordinary general meeting will take place on January 7.

XXL has been in discussions with Frasers since September and the parties are not in agreement.

XXL's Chairman of the Board, Håkan Lundstedt, emphasizes that the company, despite a challenging market for sports and outdoor goods, continues to work to streamline operations and strengthen its commercial offering. By securing new financing, which combines short- and long-term bank loans with a new share issue, XXL hopes to grow and gain market share in a Nordic market that is expected to recover. Lundstedt also expresses gratitude for the continued support from shareholders and banks, and emphasizes the company's long-term potential.

"In implementing our Reset & Rethink plan, we have reached significant milestones and made important changes to our concept and business, and now we are ready and eager to take the next step by further strengthening our inventory with popular brands and products that our customers want, at increasingly lower price points but still with a good-better-best price ladder. However, I already feel that our stores are well stocked with good brands, products and prices and that we are back in better shape than we have been in a long time", says XXL's CEO Freddy Sobin in a comment.