Portfolio

Findel reiterates rejection of Sports Direct offer

By Michele Maatouk

Date: Wednesday 20 Mar 2019

(Sharecast News) - Home shopping company Findel has responded to the posting of an offer document by Sports Direct, urging its shareholders to take no action and reaffirming its view that it "significantly" undervalues the group.
"The board will write to shareholders with its detailed views on the offer in due course. In the meantime, Findel shareholders are strongly urged to take no action in relation to their Findel shares," it said in a statement.

Earlier this month, Findel's board of directors unanimously rejected the £139m - 161p a share - bid from Sports Direct, after it upped its stake in the company to 36.8% from 29.9%. Under takeover rules, any investor who buys more than a 30% interest in a company must make a bid for the whole entity.

In its statement about the mandatory offer on 4 March, Sports Direct said: "Following successful pilot-scale commercial tests of Sports Direct-licensed clothing brands on Express Gifts' Studio.co.uk website, designed to strengthen Express Gifts' product offer for the value-conscious customer, Sports Direct and Findel have further developed the commercial supply arrangements between Express Gifts and Sports Direct.

"Sports Direct continues to recognise the value and quality of the Findel business, and sees the offer as an opportunity to give increased support to Findel to maximise the value of its existing business. The offer is as an effective way of expanding the commercial arrangements between Sports Direct and Findel, and giving Sports Direct increased exposure to the future growth of the Findel business."

At 1000 GMT, Findel shares were up 0.3% at 160.50p.

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