Sir Ron Brierley's Mercantile has lobbed a low-ball bid for Yellow Brick Road

Corporate raider Mercantile Investments has lobbed a $25.4 million cash bid for Yellow Brick Road, offering no premium to the stock price.

Mercantile, which is led by legendary coporate raider Sir Ron Brierley, told YBR shareholders in a bidder’s statement the company’s shareholder returns were -86 per cent over the past four financial years.

Yellow Brick Road’s (ASX:YBR) share price has tumbled by 40 per cent in the last six months.

Macquarie Group began selling its shareholding in May, during which time the share price fell to a 52-week low in June of 8.7c.

The company closed on Monday at 9c.

Mercantile owns 19.97 per cent already, a stake it began building in November 2016.

It says it’s disappointed by the financial performance of Yellow Brick Road and could delist the company if it gains control.

Yellow Brick Road chairman Mark Bouris responded by saying the offer was opportunistic “in its nature, timing and pricing” and he would respond with a recommendation in due course.