British home shopping company Findel has doubled down on their rejection of the £140m takeover offer made by Sports Direct, they have urged shareholders to reject the offer.
Earlier this month Sports Direct made a mandatory offer of 161p per share, in cash to buy the company.
Findel’s board sent a circular to investors and said the offer significantly undervalues the company.
Ian Burke, chairman of Findel said, “The Findel Board believes that Sports Direct’s offer is highly opportunistic and significantly undervalues the group and its prospects.
“Sports Direct’s offer provides no compelling reason as to why 161p per share represents a fair price, especially given the operational and financial progress made in transforming the group into a market-leading online value retailer.
“As stated in its offer document, Sports Direct endorses the strategic plans that the Findel Board is implementing and is supportive of the Findel leadership team delivering these.
“It is against this backdrop that the board is unanimous in its recommendation that shareholders reject the offer and take no action.”
Mike Ashley is also battling to takeover Debenhams mulling over a £61.4m bid.