leadf
logo-loader
viewFrasers Group PLC

Sports Direct makes £140mln bid for online discount retailer Findel

Sports Direct’s stake in Findel has risen above 30%, forcing the FTSE 250 group to make an offer for all of Findel’s shares

findel studio.co.uk
Investors have three weeks to decide whether to accept the 161p-a-share offer

Shares in Findel PLC (LON:FDL) zipped higher on Monday after the online discount retailer was the subject of a £140mln offer from Sports Direct International PLC (LON:SPD).

Sports Direct, owned by retail billionaire Mike Ashley, was forced to make the offer after its stake in the home shopping company surpassed 30%.

READ: Findel expects full-year profit at top-end of forecasts

The FTSE 250 group bought up the shares owned by City Financial Absolute Equity Fund for 161p each, which took its holding from 29.9% up to 36.8% and forced it to make an offer to other shareholders.

Investors now have three weeks to decide whether or not to take up Sports Direct’s offer of 161p a share.

Findel sells some of Sports Direct’s products through its Studio business, which used to be known as Express Gifts.

No changes planned

Sports Direct said it had no intentions of messing around with Findel’s management or business strategy.

“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,” said the company in a stock exchange announcement.

“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.”

Findel shares rose 6.8% to 173p on Monday morning, while Sports Direct edged 1.0% higher to 275.3p.

Quick facts: Frasers Group PLC

Price: 435 GBX

LSE:FRAS
Market: LSE
Market Cap: £22.53 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Condor Gold adds second drill rig as they look to ramp up drill program at...

Condor Gold (AIM: CNR- TSE: COG) CEO Mark Child joined Steve Darling from Proactive with news the company has added a second drill rig on their La India Project, in Nicaragua. Child telling Proactive, this rig will help speed up infill drilling on their current 4000-metre program. The...

35 minutes ago

2 min read