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Blacks Leisure Group (BSLA)

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Friday 19 March, 2010

Blacks Leisure Group

Rejection of approach from Sp

RNS Number : 8469I
Blacks Leisure Group PLC
19 March 2010
 



Blacks Leisure Group plc

("Blacks Leisure" or "the Company")

 

Rejection of approach from Sports Direct International plc ("Sports Direct")

 

Following the announcement on 2 March 2010 by Sports Direct that it was evaluating a possible cash offer for the entire issued and to be issued share capital of Blacks, the Board of Blacks announces that it has received an indicative non binding offer from Sports Direct, which may or may not lead to an offer being made for the Company.

 

The indicative offer is 62 pence in cash for each Blacks ordinary share which represents a premium of 3.33% to the closing mid-market price at the close of business on the day before receipt of the indicative offer.  The making of the offer is stated to be subject to several pre-conditions, including the unanimous recommendation of the offer by the Board.  The Board is of the view that one or more of these pre-conditions cannot be met.  

 

The Board, having consulted with its advisers, has rejected the indicative offer as being wholly inadequate. 

 

The Board has previously indicated that the proposed fundraising, due to be completed on 25 February 2010, would have provided capital to accelerate the final phase of the Group's Turnaround Plan  which the Board  and its advisers  believe  would have led to a substantial increase in shareholder value.  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 and therefore intends to pursue, as soon as practicable, a pre-emptive fundraising which would be structured in such a way as to only require an ordinary resolution being passed (requiring a simple majority of shares being voted on the resolution).

 

This announcement has been made without the consent of Sports Direct. There can be no certainty that an offer will be made to shareholders or the terms on which any offer might be made. 

 

 

- Ends -

 

Enquiries:

Blacks Leisure Group plc

01604 597 222

Neil Gillis, Chief Executive




Singer Capital Markets

020 3205 7500

Jeff Keating


Jos Trusted




Citigate Dewe Rogerson

020 7638 9571

Simon Rigby


Kevin Smith






 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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