Sports Direct boss edges closer to Findel board
Shirebrook-based Sports Direct has confirmed that it is in early stage discussions with listed company Findel regarding a possible supply deal between Sports Direct and Express Gifts (a subsidiary of Findel) together with the possible appointment of Mike Ashley to the Board of Findel.
The proposal was made by Schroders on behalf of Sport Direct and includes a requirement that Ashley, founder and majority shareholder of Sport Direct, be made chairman of Hyde-based Findel.
He would replace the outgoing chairman, David Sugden, who has already announced his intention to step down.
Sports Direct bought a stake in Findel last September and has since built its shareholding to around 30%.
Last year Ashley failed in his attempt to put a representative on to Findel’s board to wield influence over a potential business agreement.
Now, major investors Toscafund and Schroders are supporting Ashley’s bid to become chairman of Findel.
The news comes as Sports Direct gets ready to issue full year results on Thursday that are thought to see a drop in turnover and profit.
A statement from Sports Direct read: “Like Findel, Sports Direct considers there to be great merit in exploring these arrangements.
“Whilst Sports Direct welcomes any support for these discussions from Findel’s other major shareholders, including Schroders and Toscafund, Sports Direct would like to make clear that it is acting on its own behalf, and independently from such other shareholders.
“There can be no certainty that these discussions will result in any agreement between Sports Direct and Express Gifts.”
In a stock market announcement Findel said: “The board of Findel considers there to be great merit in exploring a commercial supply arrangement with SDI and that Mike Ashley could make a valuable contribution to the board of Findel but has not concluded on whether Mr Ashley should be chairman.
“There would need to be means through which minority shareholders could be protected and Mr Ashley would need first to be approved by the Financial Conduct Authority, which regulates Express Gifts Limited.”
