Victoria's Secret has adopted a limited-duration shareholder rights plan, commonly known as a "poison pill," following an increase in stake by Australian billionaire Brett Blundy's investment firm, BBRC International Private Limited. The move aims to protect the company against any attempts to gain control without offering a fair premium to all shareholders.
Under the plan, each existing shareholder will receive one right per share on May 29, which activates if any investor's stake reaches or exceeds 15%. BBRC currently owns about 13% of Victoria's Secret with 10.31 million shares and had previously violated U.S. antitrust rules by not filing required disclosures over three years. The firm has since corrected the filings, paving the way to potentially increase its holding to 49.99% after a waiting period ends on May 21.
The adoption of the poison pill comes amid weak consumer demand driven by economic concerns and follows BBRC’s pattern of acquiring control of retail brands. BBRC has also backed other consumer companies such as Bared Footwear and Oz Hair & Beauty. Victoria's Secret's decision reflects a strategic effort to maintain control and ensure that any significant changes in ownership are conducted transparently and equitably.
Victoria's Secret's implementation of a shareholder rights plan underscores its commitment to protecting shareholder interests and maintaining strategic autonomy. As the company navigates a challenging retail environment, such measures are vital in preserving its ability to execute long-term strategies without undue external influence.