Statement re Debenhams plc

RNS Number : 4805V

Sports Direct International Plc

08 April 2019

 

Date: 8 April 2019

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

SPORTS DIRECT INTERNATIONAL PLC

("Sports Direct" or the "Company")

Statement regarding proposal made to Debenhams plc

Sports Direct announces that it has today received a letter from Debenhams plc ("Debenhams") rejecting the proposal made by Sports Direct to underwrite a £150 million equity issuance by Debenhams.

Sports Direct had sought to constructively engage with the Debenhams board, including over the weekend, in order to put together a proposal for a solvent solution for Debenhams in the form of a £150 million pre-emptive equity issuance to existing Debenhams shareholders ("Equity Issuance"). Sports Direct believes that the Equity Issuance, which would have formed part of a comprehensive refinancing of Debenhams, should have been deliverable with the co-operation of Debenhams and its existing lenders.

As such, Sports Direct is disappointed with Debenhams' response. Sports Direct believes that, in the continued absence of any such engagement from the board of Debenhams and Debenhams' lenders, there is a likely significant and negative impact on Debenhams' current shareholders and other stakeholders, including suppliers and employees. Sports Direct therefore calls upon the board of Debenhams and its lenders to actively engage in negotiations.

Notwithstanding Debenhams' rejection of Sports Direct's proposal in relation to the Equity Issuance, Sports Direct continues to actively evaluate all possible options to support Debenhams.  Accordingly, Sports Direct continues to give active consideration to its pre-conditional possible offer for Debenhams at 5p in cash per ordinary share announced on 25 March 2019.  Sports Direct has until 5.00pm on 22 April 2019 to announce either a firm intention to make an offer for Debenhams or that it does not intend to make an offer.

Enquiries:

Numis (Financial adviser to Sports Direct)

Luke Bordewich Stuart Ord George Fry

[phone]

 Sports Direct

Cameron Olsen, Company Secretary

[phone]

Further information

Numis Securities Limited ("Numis"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as financial adviser exclusively for Sports Direct and no one else in connection with the matters set out in this announcement and will not regard any other person as its client in relation to the matters in this announcement and will not be responsible to anyone other than Sports Direct for providing the protections afforded to clients of Numis, nor for providing advice in relation to any matter referred to herein.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of any offer to buy, sell, subscribe for any securities or the solicitation of any vote in any jurisdiction.

The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions.  Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available at http://www.sportsdirectplc.com/investor-relations.aspx by no later than 12 noon (London time) on 9 April 2019. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement. 

 

END

 

 

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