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Blacks reject "wholly inadequate" offer from Sports Direct in favour of a cash call
Blacks Leisure Group Plc today said it will attempt a fundraising for a second time, after rejecting an "inadequate" indicative offer from sportswear retailer Sports Direct International Plc.
The firm called off an original £22 million share sale following the takeover interest from shareholder Sports Direct, but today Blacks said it believes Sports Direct is attempting to transfer potential shareholder value from shareholders to Sports Direct. That is rather in the nature of business so it should not come as a surprise to them, but indicates that the Blacks management may still continue to live in another world.
Sports Direct's indicative offer of 62 pence in cash for each Blacks ordinary share, which represents a 3.33% premium to the closing price of Blacks shares the day before receipt of the indicative offer, is "wholly inadequate," Blacks said.
The offer was subject to several pre-conditions, but the board said one or more of these can't be met.
Blacks said its original cash-call plan would have led to a substantial increase in shareholder value and it still views a fundraising as in the best interests of shareholders.
It now intends to pursue, as soon as practicable, a pre-emptive fundraising which would be structured in such a way to only require an ordinary resolution being passed.
The firm called off an original £22 million share sale following the takeover interest from shareholder Sports Direct, but today Blacks said it believes Sports Direct is attempting to transfer potential shareholder value from shareholders to Sports Direct. That is rather in the nature of business so it should not come as a surprise to them, but indicates that the Blacks management may still continue to live in another world.
Sports Direct's indicative offer of 62 pence in cash for each Blacks ordinary share, which represents a 3.33% premium to the closing price of Blacks shares the day before receipt of the indicative offer, is "wholly inadequate," Blacks said.
The offer was subject to several pre-conditions, but the board said one or more of these can't be met.
Blacks said its original cash-call plan would have led to a substantial increase in shareholder value and it still views a fundraising as in the best interests of shareholders.
It now intends to pursue, as soon as practicable, a pre-emptive fundraising which would be structured in such a way to only require an ordinary resolution being passed.
Fri, 19th Mar 2010