Blacks rejects Sports Direct approach
Northampton leisure retailer Blacks has rejected a takeover offer from Sports Direct. Blacks received an “indicative non-binding offer” from Sports Direct on Wednesday, which may or may not lead to an offer being made for the company. Blacks’ board has rejected the offer of 62 pence in cash for each Blacks ordinary share, which would value the company at £26.4m, describing it as “wholly inadequate”. Last month, Blacks attempted to raise cash to fund its turnaround plans, but Sports Direct blocked the move. A Blacks statement to the Stock Exchange this morning read: “The board is of the view that, having blocked the proposed fundraising despite being offered full pre-emptive participation in it, Sports Direct is now attempting to transfer that potential shareholder value from shareholders to Sports Direct. Accordingly, the board continues to consider the implementation of a fundraising for the company to be in the best interest of shareholders as a whole.” In its response, Sport Direct said it was disappointed that its approach has been rejected: “It [Sports Direct] continues to hope that the board will recognise the merits of an offer which, if made, it believes would be highly attractive for Blacks shareholders, particularly in the context of Blacks’ share price performance over the past 12 months.”
