‘Take Sports Direct off the market’
Sports Direct has been the worst FTSE 100 performer this year
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Your support makes all the difference.Mike Ashley has been urged to end Sports Direct’s stock market misery by taking the retailer private, four weeks after the controversial businessman denied he was lining up a shock bid.
Jefferies, the Wall Street bank, said a deal “makes sense” as it would remove the corporate governance issues from the public eye and give the billionaire freedom for more overseas acquisitions, which have been questioned by investors.
Its analyst James Grzinic said Mr Ashley, who owns 55 per cent of Sports Direct, could use £400m of his personal fortune and £1bn in loans to buy out investors holding the remaining 45 per cent with a £1.48bn bid at 550p a share, about 35 per cent higher than the current share price.
Sports Direct has been the worst FTSE 100 performer this year, losing almost half its value since the start of December following a shock profit warning and concerns about working conditions.
Last month, market speculation grew that Mr Ashley, who also owns Newcastle United, was plotting to take the company private to end a fractious relationship with investors and analysts.
However, his spokesman told journalists following up the rumours then that “there is not a shred of truth in the story”.
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