Sports Direct International Plc Statement regarding response from Debenhams plc (8015T)
March 25 2019 - 3:00AM
UK Regulatory
TIDMSPD TIDMDEB
RNS Number : 8015T
Sports Direct International Plc
23 March 2019
Date: 23 March 2019
SPORTS DIRECT INTERNATIONAL PLC
("Sports Direct" or the "Company")
STATEMENT REGARDING RESPONSE FROM
DEBENHAMS PLC
Sports Direct refers to the announcement of Debenhams plc
("Debenhams") regarding Sports Direct's proposal in respect of the
potential acquisition of Magasin Du Nord.
Sports Direct wishes to confirm that an offer that it believes
represents in excess of fair value and addresses Debenhams'
immediate liquidity concerns was made to the board of Debenhams for
Magasin. Sports Direct notes that it did not receive a response to
its invitation to Debenhams to provide further details of its
valuation should Debenhams believe Magasin to be worth more than
the GBP100m offered. The offer for Magasin is one of several offers
that Sports Direct has made to provide the board of Debenhams with
a valid alternative to its apparent view that that multiple
insolvency processes are required to address Debenhams' current
liquidity concerns and to facilitate a wider balance sheet
restructuring.
Sports Direct's representatives and advisors have participated
in discussions with Debenhams' advisory group. However, it cannot
be said that the board of Debenhams has actively engaged in these
discussions or are open to any form of alternative proposal from
any third party. This lack of engagement and the related limited
access to information has made it very difficult for Sports Direct
to present a proposal that addresses Debenhams' funding and
restructuring requirements beyond the immediate liquidity need. In
any event, Sports Direct believes that as a result of the entry
into of Debenhams' recent financing arrangements, the outcome of
any negotiation with a party other than Debenhams' current lenders
may be not be within the board's control.
Regarding the guidance provided to Sports Direct on behalf of
the Debenhams board, if guidance as to what might represent a
workable solution for Debenhams could result in no equity value for
Debenhams' current shareholders, from Sports Direct's perspective
and that of Debenhams' wider stakeholders, that is not a workable
solution.
Sports Direct does not consider House of Fraser to be a
competitor of Debenhams. In any event, were Mr Ashley to become CEO
of Debenhams he would, as previously announced, step down from his
roles at Sports Direct. He would also be subject to fiduciary
duties to Debenhams. Sports Direct would strongly recommend that
the Debenhams board reconsiders the offers made by Sports Direct to
date and their own duties as directors of Debenhams.
-Ends-
Sports Direct International
plc T. 0344 245 9200
Cameron Olsen, Company Secretary E. investor.relations@sportsdirect.com
LEI: 213800JEGHHEAXIJDX34
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END
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