Sports Direct considers cash offer for Blacks
UK sportswear retailer Sports Direct has confirmed it is considering a possible cash offer for struggling outdoor goods retailer Blacks Leisure, but warned there was no certainty any takeover would take place.
Blacks, whose largest shareholder is Sports Direct, said in a statement on 13 December 2011 that it had received an expression of interest from Sports Direct among a number of others, which may lead to an offer for the company.
Sports Direct lifted its stake in Blacks Leisure to 22.48% from 21.3% last week. The retailer proposed a joint venture with Blacks to merge its warehousing and IT operations, which Blacks declined when it put itself up for sale. Sports Direct said: “At this stage, there can be no certainty that Sports Direct will make an offer for Blacks Leisure, nor as to the terms on which any such offer might be made.”
The company added that in the event of any offer, it was likely to be in cash.
