Mike Ashley’s bid for online retailer slammed as opportunistic
The bid by Mike Ashley’s Sports Direct to take over Manchester based Findel Group has been slammed as opportunistic.
The Findel board issued a statement to the Stock Market this morning urging shareholders to reject the £139m bid.
Mike Ashley has been in acquisitive mode in recent months and is also involved in an attempt to take over struggling retailer Debenhams.
The board of Findel has published a response circular following the mandatory offer for the business.
The value of Findel’s shares has fallen by 15 per cent over the last month.
The takeover bid for the firm was launched on March 4th.
The board has reaffirmed its stance that the offer significantly undervalues Findel and its future prospects, and strongly urges all shareholders to take no action and reject the offer.
The statement said: “Findle is a market leading UK online value retailer and a leading supplier of resources and equipment to schools worldwide.
“Both businesses have significant potential. With a strong management team which continues to deliver on its multi-year transformation plan, your Board believes you should receive the benefit of our investment and enjoy our continued growth
“The offer of 161p per share is opportunistic and undervalues your group being at a significant discount to fair value, to the Undisturbed Share Price of 250p and to analyst target prices which range from 300p to 350p
“Findel’s recent share price performance does not reflect the underlying financial performance of the group
“Control by Sports Direct will have a number of potentially adverse consequences for Findel shareholders including an 8.8% dilution in the value of your shareholdings.”
Ian Burke, chairman of Findel, added: “The Findel Board believes that Sports Direct’s offer is highly opportunistic and significantly undervalues the group and its prospects.
“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.”
