The second-largest shareholder of home shopping retailer Findel has recommended rejecting Sports Direct’s takeover bid.
Schroders holds an 18.85% stake in Findel. It has published a letter recommending the rejection of Sports Direct’s offer for the shares it does not already own at a price of 161p per share. Sports Direct currently holds a 36.8% stake in Findel.
Schroders confirmed that it “remains supportive of Findel and its management team, and the operational and financial progress that the group has made under the leadership of Phil Maudsley and Stuart Caldwell.”
It added: “Schroders agrees with the conclusion of the Findel board that the offer significantly undervalues the future prospects of Findel and, as such, our current intention is not to accept the offer on the terms proposed.”
Findel called for shareholders to reject Sports Direct’s bid last month. The board found that the offer “significantly undervalue[d] the business and its future prospects”.
Ian Burke, chairman of Findel, said: “We are grateful for the support of our second-largest shareholder in Schroders, and continue to recommend strongly that all other shareholders take no action in respect of the offer from Sports Direct.”