Sports Direct swoops on Findel with £140m offer

Mike Ashley’s Sports Direct International has made a £140m offer to take full control of home shopping company Findel.

Sports Direct, which already has a 29.9% stake in the business and is its biggest investor, said it had unconditionally agreed to acquire 6m shares from a single shareholder, City Financial Absolute Equity Fund, at 161p per share. That takes its holding to 36.8%, above the 30% threshold set by the Takeover Code, meaning Sports Direct must now make a bid for the entire company.

Sports Direct is offering 161p per share in cash for the remaining stock, valuing the business at £139.2m.

In a statement, the sports retailer said: "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.

"The offer is 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, which sells a range of products including clothing and gifts through catalogues and websites, had recently started selling Sports Direct-licensed clothing brands. It also has an educational resources business, Findel Education.

Sports Direct has previously accused Findel of under-delivering, and in March 2018 a Sports Direct director, Liam Rowley, was allowed to observe Findel’s board meetings. A few years ago, debt-laden Findel was the subject of much ire for Ashley after his attempts to appoint a representative to Findel's board were blocked and other support was refused, echoing recent tussles with Debenhams.

Ashley, who is also chief executive of the sports retailer, controls more than 50% of Sports Direct.

At 1140 GMT, shares in Sports Direct were up 1% at 275p, while Findel's stock, which had fallen 46% from last July's five year high above 300p, jumped 8% to 175p.