Sports Direct considers making £61 million bid for Debenhams
Sports Direct has revealed that it may make a £61.4 million all cash offer for the struggling Debenhams department store chain.
Already owning nearly 30% of Debenhams, the company said it would also assist the retailer in addressing its immediate funding requirements.
The offer would be dependent on Debenhams appointing Sports Direct head Mike Ashley as its chief executive. In addition, Debenhams would need to agree not to enter into any third party funding arrangements, grant any new security over any of its assets, or enter into any administration, CVA or other insolvency process.
Sports Direct said in a statement: “Sports Direct believes that the possible offer would offer fair and full value for Debenhams. It does not believe that Debenhams has the same value if it is (in effect) handed over to Debenhams’ existing lender group. As such, Sports Direct would expect the possible offer to be attractive to Debenhams shareholders and other stakeholders as an alternative to Debenhams’ current restructuring and refinancing process.”
Debenhams has been resisting Sports Direct’s attempts to take over the business. Earlier this month, Sports Direct said it would be willing to provide the department store with a £150 million interest free loan in return for more equity following Debenhams’ announcement that it was in talks with its lenders regarding loans of around the same amount.
