Statement re Blacks Leisure Group PLC

RNS Number : 2756V

Sports Direct International Plc

10 January 2012

 



10 January 2012

Sports Direct International plc

Statement re: Blacks Leisure Group plc ("Blacks")

Sports Direct notes the announcement yesterday from Blacks Leisure Group plc in relation to the appointment of administrators and sale of the business. This is disappointing in particular given the dismissal of Sports Direct's Offer for the business at 62p a share back in 2010. Our Offer was turned down by a previous Board of the Company as being "wholly inadequate". The total share value written off amounts to £52.6 million (£45.4 million for previous financial years and £7.2 million in the current year). However despite this it is important to note that this will have no impact on our previous guidance for the business achieving our underlying EBITDA Bonus Share Scheme target. Even before yesterday's announcement by Blacks, it had become clear that there was no value left in the Blacks shares that we held.

During the asset sale process run by KPMG Sports Direct has looked closely at the Blacks business, always in the best interests of our shareholders. However, given supplier relationship issues that remain, such as The North Face who were not prepared to respond to our approaches, we could not justify a higher price for the Blacks business.

Going forward we would urge the OFT to look closely at both the Outdoor and Sports retail markets to ensure they operate in the best interests of the consumer.

For further information, please contact:

Sports Direct International plc Dave Forsey, Chief Executive Bob Mellors, Group Finance Director	T. 0845 129 9229
FTI Consulting Jonathon Brill Caroline Stewart Alex Beagley	T. 0207 831 3113

 

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