Findel says Sports Direct offer saw low take-up, suitor extends deadline
Findel said on Wednesday that Sports Direct’s failure to get enough support to acquire the business confirmed its position that the bid “significantly undervalues” the company.
Sports Direct was required to make a mandatory cash offer for the home shopping retailer after it bought 6 million shares in Findel in March, taking its shareholding to 36.8%.
It offered to buy the remaining shares it does not already hold for 161p per share. The bid values Findel at about £139.2 million.
9 of April was the first closing date for the offer to be declared unconditional, however Sports Direct received valid acceptances for just 0.98% of Findel’s capital. This takes its stake in the business to approximately 37.82%, which is not enough to force a takeover.
As a result Sports Direct has extended the closing date for the proposed acquisition until 24 April. The acquisition-hungry retail group owned by Mike Ashley is keen to add Findel to its growing portfolio as some of its clothing brands have been selling well on Findel-owned Studio.co.uk.
On Wednesday, the board of Findel used the opportunity to reiterate its rejection of the takeover bid and urged shareholders to take no action and reject the offer. Findel shares increased slightly by 0.2% and were trading at 164p on Wednesday morning.
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