Sports Direct offers £100m for Debenhams’ Magasin du Nord brand
Retailer Sports Direct has made an offer Debenhams’ Danish retail business Magasin du Nord for £100m as part of its ongoing attempts to take over the ailing UK company.
Sports Direct made the move after Debenhams announced it hopes to secure a £200m funding lifeline from lenders and existing shareholders.
In a statement issued via the London Stock Exchange, Sports Direct said it “wishes to confirm that in order to assist Debenhams with its short term liquidity requirements, Sports Direct has offered to acquire (subject to necessary consents and approvals) Magasin du Nord, Debenhams' Danish business.”
“Magasin du Nord had been put up for sale by Debenhams last year, and Sports Direct offered to purchase the business for £100m cash consideration (or, if Debenhams believes the business is worth more, has invited Debenhams to provide further details of its valuation).”
Option for Debenhams to buy back
It also said that under Sports Direct's proposal, Debenhams would have a 12 month option to buy back Magasin du Nord at the price at which it was sold to Sports Direct.
“Debenhams would also have the right to continue to market the business, gaining the benefit from any uplift above the initial sale consideration were it sold to a third party in that 12 month period”, Sports Direct said.
Sports Direct founder, Mike Ashley, has been trying to takeover the Debenhams brand and install himself on the board of the famous high street retailer.
“In connection with the above, it is proposed that Mr Mike Ashley would become a director and the CEO of Debenhams to assist Debenhams through its restructuring process,” Sports direct said in the statement.
“Sport Direct believes its proposal would provide additional management and first class leadership to Debenhams through this challenging period of restructuring, together with additional funding.”
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