- Huw Hughes |
Mike Ashley’s Sports Direct has announced it is considering making a 61.4 million pound offer for Debenhams.
The possible firm offer would see Sports Direct, which already owns a near 30 percent share stake in the retailer, buy the remaining 70 percent at 5p per share. Sports Direct said that if its offer was accepted, the sports retailer would “assist Debenhams in addressing its immediate funding requirements.”
The offer also came with several conditions. Sports Direct said that the offer will only go ahead if Ashley is appointed CEO of Debenhams, and if Debenhams terminates the noteholder consent solicitation process - the process it announced last week that would see its existing investors injecting 200 million pounds into the company.
The possible offer would also require Debenhams group to agree not to enter into any third party funding arrangements, granting any new security over any of its assets or entering into any administration, CVA or other insolvency process.
Sports Direct could pay 5p per share for Debenhams
Sports Direct said in the statement that it “believes that the possible offer would offer fair and full value for Debenhams” and that it “does not believe that Debenhams has the same value if it is (in effect) handed over to Debenhams' existing lender group.”
The statement continued: “As such, Sports Direct would expect the possible offer to be attractive to Debenhams shareholders and other stakeholders as an alternative to Debenhams' current restructuring and refinancing process.”
Sports Direct first announced it was considering a takeover bid earlier this week, but Debenhams replied in a statement saying that, while it would be given “due consideration” by its board, its timing meant it would not “address Debenhams' immediate funding requirement.”
On Friday, Sports Direct also offered to buy Debenhams' Danish business, Magasin Du Nord, for 100 million pounds. Debenhams dismissed the bid.
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