Sports Direct International said it was considering making a cash offer for the 71.5% of Blacks Leisure that it does not already own.
Speculation that the firm was preparing a bid for Blacks has been rife since February when Sports Direct purchased a 28.5% shareholding in the group.
Tuesday’s announcement comes a week after Sports Direct used its major shareholding to block an attempt by Blacks to raise £20m in extra funds. Blacks had planned to use the fresh capital to fund the opening of up to 35 new stores and the refurbishment of a number of existing sites.
In light of the Sports Direct takeover interest, Blacks – which operates its own brand shops as well as 208 Millets stores – said it would now look to secure an alternative fundraising to support its recovery efforts, which would only require 50% shareholder approval.
In a statement Blacks said it “The board intends to pursue an alternative fundraising for the company but one which will involve only an ordinary resolution being passed (requiring the support of a simple majority of shares being voted on the resolution) in the absence of any concrete takeover proposals from Sports Direct that the board feels that it can recommend.”
