Findel rejects Sports Direct’s takeover bid

Findel’s board of directors has unanimously rejected Sports Direct’s £139m bid it has, saying the offer “significantly undervalues” the company.

The news comes after the company agreed to buy shares in Findel worth £9.7m, taking its stake in the Accrington-based business from 29.9% to 36.8%. Under takeover rules any investor who acquires more than 30% must make a bid for the whole company.

However in a statement to the stock exchange Findel’s directors urged shareholders not to take action.

A Sports Direct statement said on Monday that the offer was an “effective way” of expanding the commercial arrangements between the two companies.

It 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.”

The offer for Findel comes as the latest move in Ashley’s spending spree which has seen him acquire Evans Cycles, House of Fraser and Sofa.com, before unsuccessfully attempting to buy HMV.