Sports Direct lines up offer for Blacks Leisure Group

Sports Direct lines up offer for Blacks Leisure Group

 

Retailer Sports Direct is considering a bid to take over struggling rival Blacks Leisure, the company announced today (2 March).

The announcement to the London Stock Exchange followed Sports Direct’s acquisition of a 28.5% share in Blacks last week.

“Sports Direct confirms that it is evaluating a possible cash offer for the entire issued and to be issued share capital of Blacks,” the company said.

“There can be no certainty that any offer will ultimately be made for Blacks and a further announcement will be made when appropriate.”

The news is the latest episode in a long-running saga, with Sports Direct threatening to block a GBP20m (US$30m) share issue in Blacks as the company’s leading shareholder.

This caused the adjournment of a general meeting of Blacks to discuss the share issue last week.

Sports Direct, owned by Mike Ashley, was widely rumoured to have been in talks to acquire a controlling stake in Blacks last year, but the negotiations collapsed without agreement.