21st Oct 2019 17:19
(Alliance News) - Sports Direct International PLC said on Monday it does not intend to make a takeover offer for Goals Soccer Centres PLC.
The sportswear retailer said it had "limited" and "fitful" access and cooperation from the board of Goals to support a possible offer. Accordingly, Sports Direct said it was unable to complete necessary due diligence to progress the bid.
"The board of Goals continues to pursue the AMA process it set out on 29 August 2019, a process which, if successful, Sports Direct believes will result in significant dilution in value for those shareholders who do not participate in the AMA process and be to the detriment of certain creditors," said Sports Direct.
Sports Direct in September offered to buy all Goals shares it does not own for 5.0 pence per share, an 81% discount to Goals' last closing price of 27.20p before its shares were suspended and then later cancelled. Sports Direct already holds a 19% stake in the firm.
When announcing its share cancellation at the end of September, Goals said the process of inviting offers for the business and assets of the firm would continue and would not be affected.
By Lucy Heming; [email protected]
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