Sports Direct weighs up offer for Blacks
Sporting goods retailer Sports Direct, based in Derbyshire, is considering a cash offer for Blacks Leisure a week after it blocked a £20m fundraising attempt by the Northampton company. While Sports Direct has warned that there is “no certainty” an offer will ultimately be made, Blacks has withdrawn its fundraising plans and said that, “in the absence of any concrete takeover proposals from Sports Direct that the board feels it can recommend”, it will seek a way to raise funds that its rival will be unable to block. Last week, Blacks Leisure adjourned a general meeting after Sports Direct re-acquired a 28.5 per cent stake in its smaller rival and announced it would not support a capital raising. Shares in Blacks, which does not intend to reconvene the shareholders meeting, rose to 58 pence after the Sports Direct announcement. In February, Sports Direct, controlled by Newcastle United owner Mike Ashley, bought back an 11 per cent stake in JD Sports Fashion.
