Mobly Faces Hostile Takeover by Dubrule Family at Deep Discount

Mobly, a prominent online furniture retailer in Brazil, is the target of a hostile takeover bid by Regain Participações and Paul Jean Marie Dubrule, co-founder of Tok&Stok. The proposal, disclosed through a company filing, offers to purchase up to 100% of Mobly's shares at a price significantly below its closing value and well below its IPO price. Faced with financial difficulties, Mobly has yet to post a profit since its initial public offering and carries a substantial debt burden exceeding R$ 600 million, which has dramatically diminished its stock value. The Dubrule family, having lost control of Tok&Stok after its acquisition by Mobly, aims to regain influence through a R$ 100 million capital injection and the conversion of existing debentures and credits into Mobly shares. However, Mobly's board and significant shareholders have rejected the offer, highlighting its undervaluation and protecting their interests through provisions like the poison pill clause. The outcome of this takeover attempt could significantly impact the Brazilian retail landscape, highlighting the inherent risks in expansion strategies and high leveraging.