Sports Direct International PLC (LON:SPD) said its £139.2mln takeover offer for Findel PLC (LON:FDL) has lapsed after it failed to secure enough backing from fellow shareholders.
The sportswear retailer, whose founder and chief executive is Mike Ashley, was forced to make a buyout offer last month after its stake in Findel exceeded 30%.
Findel had recommended shareholders voted against the deal.
READ: Findel shareholder Schroders backs decision to reject takeover bid from Mike Ashley's Sports Direct
On Friday, Sports Direct said it has received valid acceptances of just 0.99% of Findel’s existing issued share capital. That meant some 37.84% of Findel's shareholders, including Sports Direct's 36.84% stake, supported the deal.
Sports Direct needed more than 50% of acceptances to get the deal approved.
“In light of the level of acceptances and Findel shares already held by Sports Direct referred to above, the condition has not been satisfied,” Sports Direct said.
“Accordingly, the offer was not capable of being declared unconditional as to acceptances at 1:00pm (London time) on 3 May 2019 and therefore the offer lapsed with immediate effect.”
In April Sports Direct announced that the period for acceptances of the offer was being further extended and would remain open for acceptance until 1pm on May 3.
In late afternoon trade, Findel shares rose 1.2% to 169p.