Investor backing for Findel in Sports Direct battle

ANOTHER investor in Findel, the listed home shopping and education supplies company, has backed the company’s oppostion to sports magnate Mike Ashley, who wants to appoint a representative to its board.

Last week the board of the Hyde-based company urged investors to vote against Ashley’s Sports Direct International business, which wants to use its 19% shareholding in Findel to appoint its own man to the board.

Findel argued that Benjamim Gardener, the SDI representative, would not be independent and lacked the qualifications to be a listed company director.

Having already received the backing of institutional investors Schroders and Toscafund in opposing Sports Direct, asset manager River and Mercantile has given an irrevocable undertaking to vote against a proposal to appoint Sports Direct’s representative Benjamin Gardener as a non-executive.  

Together, the three shareholders hold nearly 44% of the shares in Findel. Analysts said that as Sports Direct needed 50 % per cent or more support, its proposal was hanging in the balance ahead of a Findel shareholder on December 21.

Findel has three main operations: Kitbag, which operates stores and sells replica football strips of clubs including Real Madrid and Manchester City; Express Gifts, a gift catalogue business based in Accrington; and an educational supplies business.

Sports Direct acquired its 19% stake in Findel in September only months after it had failed to secure a deal to buy Kitbag, which is being sold to an un-named overseas investor, the company said.