Sports Direct has made an official bid for home shopping firm Findel as it sent out an offer document to shareholders.
The company, which is currently the firm’s largest shareholder, has offered to buy the rest of Findel’s stock for 161p per share.
Earlier this month Sports Direct, which is owned by retail tycoon Mike Ashley, acquired additional Findel shares taking its holding to 36.8 per cent, prompting it to make a mandatory offer of £139m to buy the rest.
Findel said the offer “significantly undervalues the group” and the board rejected the proposal 161p per share offer. The offer will be put to shareholders, who have three weeks to respond.
The offer document published today said: "Following successful pilot-scale commercial tests of Sports Direct-licensed clothing brands on Express Gifts’ Studio.co.uk website, designed to strengthen Express Gifts’ product offer for the value-conscious customer, Sports Direct and Findel have further developed the commercial supply arrangements between Express Gifts and Sports Direct.
"Sports Direct continues to recognise the value and quality of the Findel business, and sees the offer as an opportunity to give increased support to Findel to maximise the value of its existing business.
"The offer is an effective way of expanding the commercial arrangements between Sports Direct and Findel, and giving Sports Direct increased exposure to the future growth of the Findel business."