MySale boss spends £3m on shares after price plunges

The boss of MySale, which counts Sir Philip Green and Mike Ashley among its investors, has bought £3m-worth of shares in the Australian fashion website.

Carl Jackson bought 3.745m ordinary shares at 79.92p per share, taking his stake in the firm to 2.49pc.

Carl and his elder brother James, who together founded the business, own 34.81pc of the equity and Wednesday's stock purchase would have triggered a requirement to make a takeover offer for MySale.

However, the chief execuitve obtained written statements from other shareholders representing at least 50pc of the stock that they would not accept a bid, which would waive the requirement to launch a takeover, and will not sell shares to Mr Jackson.

The stock purchase comes just a week after a major profit alert sent shares in the company plunging to a record low.

Aim-listed MySale, which sells out-of-season clothing, warned that full-year profits would be “materially” lower than market forecasts.

The shock downgrade followed June’s botched initial public offering in which MySale shares were listed in pounds and not pence, confusing trading systems and sending the stock sharply lower on the retailer’s market debut.

Priced at 226p apiece in the float, the stock dropped to 66p on December 16. The shares were trading up 3.4pc at 79.25p on Wednesday.

Other investors include Sir Philip Green, who holds almost a quarter of MySale through an investment firm owned by his wife, and 4.8pc shareholder Mike Ashley, the sportswear tycoon.

MySale shares closed up 1.1pc at 77.5pc on Wednesday.