LONDON (dpa-AFX) - Sports Direct International Plc (SPD.L) Friday said after careful consideration, it has decided not to proceed with an offer for Blacks Leisure Group Plc (BSLA.L). Sports Direct is the biggest shareholder of Blacks Leisure. Subsequent to the announcement, shares of Blacks Leisure fell more than eight percent in the morning trade on the London Stock Exchange.
'...after careful consideration, notwithstanding that Sports Direct remains a committed and supportive shareholder of Blacks Leisure, Sports Direct has decided not to proceed with an offer for Blacks Leisure,' the company stated.
Earlier this month, Blacks Leisure announced its decision to invite offers to support further investment in the Group, including a sale of the firm or sale of one or more of its brands. The U.K.- based retailer of outdoor specialist clothing, footwear and equipment noted that its directors do not believe that the Group will be able to complete a fund-raising which would provide for its equity requirements.
As at December 5, 2011, the company's net bank debt was about 36 million pounds. It had engaged KPMG to conduct the sale process.
On December 13, Blacks Leisure said it received an expression of interest from Sports Direct, amongst various other companies, which may or may not lead to an offer being made for Blacks Leisure. On the very same day, the sporting goods retailer announced that it was not certain, whether it would make an offer for Blacks Leisure.
In November end, Blacks Leisure forecast its outcome for the full year to be below expectations, but noted that the results are substantially dependent on its trading performance over the Christmas period.
SPD.L is currently trading at 204.2 pence, up 14.2 pence or 7.47 percent, on a volume of 335 thousand shares on the LSE, against a three-month average volume of 237 thousand shares.
BSLA.L trades at 2.05 pence, down 8.89 percent, on 385 thousand shares.
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© 2011 AFX News
