Sports Direct, based in Shirebrook, has put forward a possible offer for Debenhams.
After initially proposing a loan to the department store and then earlier in the week revealing it may make a cash bid, Sports Direct has finally announced an offer valuing Debenhams at £61.4 million.
The offer, however, is conditional on the appointment of Sports Direct’s Mike Ashley as CEO of Debenhams.
A statement from Sports Direct reads: “Sports Direct wishes to confirm that it is considering making a firm offer for the entire issued and to be issued share capital of Debenhams not already held by Sports Direct and that it has put the following proposal to the board of Debenhams as to its terms.
“The terms of the possible firm offer are that Sports Direct would offer 5p in cash per ordinary share for the entire issued and to be issued share capital of Debenhams which would value the total currently issued share capital of Debenhams (excluding treasury shares) at approximately £61.4 million (the “Possible Offer”).
“The Possible Offer is pre-conditional upon Debenhams immediately appointing Mr Mike Ashley as its CEO and terminating the noteholder consent solicitation process it announced on 22 March 2019. In addition, the Possible Offer is pre-conditional upon the Debenhams group agreeing not to enter into any third party funding arrangements (including those outlined in Debenhams statement of 22 March 2019), granting any new security over any of its assets or entering into any administration, CVA or other insolvency process.
“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.”