Sports Direct boss Mike Ashley looks to have lost £130m battle for online retailer

Sports Direct boss Mike Ashley looks to have lost in his bid to buy Manchester based online firm Findel Group in a £130m deal.

The announcement is the second blow for the tycoon this week. A series of bids culminating in a £200m offer for Debenhams were rejected with the retailer opting to go into administration.

Sports Direct offered to buy Findel at the beginning of last month.

Stock Market rules meant it was required to make the offer after agreeing to buy six million shares in the business from shareholder City Financial Absolute.

The deal took its holding to 36.8% from 29.9%. This was above the 30% mandatory offer threshold.

The Findel Group, which is based in Manchester and East Lancashire, had repeatedly urged its shareholders to reject the offer saying it seriously undervalued the business.

Findel specialises in online retail and educational supplies.

Just 0.98% of the firm’s shareholders accepted the offer by the end of yesterday. The deadline for the offer has now been extended until April 24th.

A statement was issued to the Stock Market this morning from Findel.

It said: “The board of Findel notes the announcement by Sports Direct that it has received acceptances in respect of 847,649 Findel shares in response to its unsolicited offer for the entire issued and to be issued share capital of Findel not already owned by Sports Direct at 161p per share in cash.

“This represents approximately 0.98% of the existing issued share capital of Findel. When combined with Sports Direct’s holding of 31,850,000 Findel shares, this totals 32,697,649 Findel shares that are either owned or for which valid acceptances have been received, being approximately 37.82% of Findel’s existing issued share capital.

“The board notes Sports Direct’s failure to secure sufficient acceptances for its offer to be declared unconditional by the first closing date of 9 April 2019.

“This reconfirms the Board’s position that Sports Direct’s Offer Price of 161p per share is opportunistic, significantly undervalues Findel and should be rejected by all shareholders.

“The board further notes that Sports Direct has chosen to extend its offer until 1pm London time on 24 April 2019 at the same offer price of 161p per share.”

The board has reiterated the following observations in relation to the offer timetable, as established by the UK Takeover Code:

•Sports Direct has until 4 May 2019 to improve or otherwise change its Offer, should it wish to do so

•Sports Direct has until 18 May 2019 (Day 60) to achieve sufficient acceptances for its Offer to become unconditional

•If the Offer at any time becomes or is declared unconditional, Sports Direct must keep it open for acceptance for at least another 14 days

Findel has repeatedly urged shareholders to rebuff Sports Direct.

In a statement last month Findel chairman Ian Burke said: “Sports Direct’s offer provides no compelling reason as to why 161p per share represents a fair price, especially given the operational and financial progress made in transforming the group into a market-leading online value retailer.

“As stated in its offer document, Sports Direct endorses the strategic plans that the Findel board is implementing and is supportive of the Findel leadership team delivering these.

“It is against this backdrop that the board is unanimous in its recommendation that shareholders reject the offer and take no action.”