Mike Ashley’s Sports Direct makes offer for Findel
Sports Direct tycoon Mike Ashley is looking to continue his retail spending spree after announcing a £139m offer to buy Findel this morning.
Sports Direct, which is currently Findel’s largest shareholder, said in a note to the London Stock Exchange that it has offered to purchase the remaining shares in Findel that it does not already hold for 161p per share, marking a 1p discount to Findel's close on Friday.
Findel, a British home shopping company, saw its share price jump seven per cent this morning on the news.
Sports Direct said today that it has agreed to acquire shares in the company that will take its holding to 36.8 per cent, requiring it to make a mandatory cash offer for the stock that it does not already hold at a price of 161p.
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The move is the latest twist in Mike Ashley's high street spending spree, which the retail tycoon has ramped up since buying House of Fraser last summer.
The Newcastle United owner has since snapped up a number of other retail brands such as Evans Cycles and Sofa.com, and has previously been linked to rescue bids for beleaguered firms such as Patisserie Valerie and HMV.
In its statement to the Stock Exchange today, the 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 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."