Frasers Group has announced a full takeover offer for Accent Group with no premium at A$0.65. Frasers Group has used the strategy in the past, building up a stake and launching an opportunistic bid with varying success. The offer represents a 3.3x EV/EBITDA multiple (FY26e). Frasers may lift the bid but has exercised patience in the past. The board will say that the offer undervalues the company, holding out for an improved offer in our view. We weight three scenarios at an equal chance of occurring: a full takeover going ahead at a premium to the current offer, a status quo scenario and a Sports Direct agreement termination.