Blacks says Ashley bid is 'inadequate'

Mar 20 2010 by Iain Laing, The Journal

BLACKS Leisure snubbed a £26m takeover approach from Newcastle United owner Mike Ashley’s Sports World business as it vowed to press on with expansion plans.

The outdoor clothing retailer described the indicative offer from its biggest shareholder as wholly inadequate, adding that it represented a premium of 3.3% on its share price the day before it received the approach.

Blacks also said it would side-step Sports World’s opposition to its fundraising plans by restructuring the shareholder vote in a way that meant it only required a simply majority of shares to be in favour.

Last month Sports World snapped up 28.5% of Blacks and vowed to stop its rival raising around £20m from shareholders for an enlargement plan that would have seen it open up to 35 new stores.

By blocking the proposed fundraising Blacks said Sports World was effectively transferring potential value from its own shareholders to Sports World.