Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Debenhams Plc    DEB   GB00B126KH97

DEBENHAMS PLC

(DEB)
SummaryQuotesNewsCompany 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Debenhams : Sports Direct considers 61.4 million pounds bid for Debenhams

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/27/2019 | 05:24am EST
FILE PHOTO: People walk past a Debenhams store in Stockport

LONDON (Reuters) - Sports Direct, the British sportswear firm controlled by Mike Ashley, is considering an offer for Debenhams that values the ailing department store group at 61.4 million pounds, prompting a jump in the target firm's battered shares.

Sports Direct, which last year bought department store chain House of Fraser out of administration for 90 million pounds, has a near 30 percent stake in Debenhams and has been trying to wrest control of it for months.

Ashley's latest move is an attempt to thwart Debenhams' restructuring and refinancing plan, which would give lenders more control over the retailer and could wipe out all shareholders.

The terms of the possible offer would be 5 pence a share in cash - a premium of 127 percent to Debenhams' closing share price on Tuesday of 2.2 pence, which valued the firm at 27 million pounds. Shares in Debenhams were up 50 percent at 3.25 pence at 0945 GMT.

Sports Direct said it would also assist Debenhams in addressing its immediate funding requirements but did not provide details. Debenhams' net debt at Jan. 5 was 286 million pounds.

Debenhams has not yet responded to Ashley's latest salvo.

Sports Direct's proposal is conditional upon Debenhams immediately appointing Ashley as its chief executive and terminating the noteholder consent solicitation process it announced last week.

That process is seeking agreement from bondholders to change the terms of some of their bonds so that Debenhams can secure new loans of up to 200 million pounds from existing lenders.

Debenhams has said that gaining those funds will allow it to pursue restructuring options to secure its future.

While Debenhams has warned that some of these options would result in no equity value for current shareholders, its preference remains a solvent re-financing of the business.

Bondholders have until Thursday to back the re-financing plan.

Sports Direct said on Monday it was mulling a possible offer for Debenhams but did not put a price on it. That move got a cool reception from Debenhams on Tuesday.

Under UK takeover rules Sports Direct has until April 22 to announce a firm intention to make an offer.

(Reporting by James Davey, editing by Louise Heavens and Alexandra Hudson)

Stocks mentioned in the article
ChangeLast1st jan.
DEBENHAMS PLC 0.00%End-of-day quote.-64.33%
SPORTS DIRECT INTERNATIONAL -1.33% 489 Delayed Quote.6.63%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DEBENHAMS PLC
01/21DEBENHAMS : As one of Britain's oldest department store chains goes into adminis..
AQ
01/15DEBENHAMS : SETS ITSELF NEW SUSTAINABLE STANDARDS FOR THE 2020s
AQ
01/13DEBENHAMS : in talks with Aviva to offload its executive pensions
AQ
01/06DEBENHAMS : Appoints abigail comber as chief marketing officer
AQ
01/06DEBENHAMS : HMV and Debenhams to shut stores in difficult start for UK high stre..
AQ
2019DEBENHAMS : Hires new board members
AQ
2019DEBENHAMS : Mike Ashley urges MPs to launch probe into Debenhams collapse
AQ
2019DEBENHAMS : Chairman appointed to parent group
PU
2019DEBENHAMS : Diamond day returns at debenhams
PU
2019DEBENHAMS : Store wins two awards at the silverburn retail awards ceremony
PU
More news
Chart DEBENHAMS PLC
Duration : Period :
Debenhams Plc Technical Analysis Chart | MarketScreener
Full-screen chart
Managers
NameTitle
Mark Anthony Gifford Chairman
Angela Morrison Director-Information Technology & Supply Chain
Alice Darwall Secretary & General Counsel
Katherine Wynne Director-Investor Relations
Sector and Competitors
1st jan.Capitalization (M$)
DEBENHAMS PLC-64.33%0
WESFARMERS LIMITED8.48%34 415
MAGAZINE LUIZA S.A.17.76%20 878
EL PUERTO DE LIVERPOOL, S.A.B. DE C.V.7.93%7 126
FIVE BELOW, INC.-9.10%6 470
MARUI GROUP CO., LTD.-3.75%5 101