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August 17, 2020updated 07 Sep 2020 6:38am

Frasers Group’s Mike Ashley offers £30m to acquire DW Sports

Frasers Group owner CEO Mike Ashley has offered over £30m to DW Sports founder Dave Whelan to acquire the sports retailer. 

By Jessica Paige

Frasers Group owner CEO Mike Ashley has offered over £30m to DW Sports founder Dave Whelan to acquire the sports retailer.

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This follows DW Sports entering administration earlier this month, leaving more than 1000 employees at risk of losing jobs.

DW Sports administrators, BDO’s Graham Newton and Ryan Grant, are said to be asking for roughly £20m for the business. Rumours indicated that Whelan’s family were looking to buy back DW Sports.

The £30m offer, which was initially reported by The Sunday Times, would comprise the acquisition of all 73 gyms and 75 stores belonging to DW Sports.

Should the offer be accepted, DW Sports would join 880 other stores that are part of the Frasers Group, including SportsDirect.com, Lonsdale, and Sweatshop.

It was reported last week that Ashley is also rumoured to be looking into obtaining 30 Debenhams stores.

Frasers Group value wavers after annual results presentation delayed

Last week, Frasers Group share price dipped after the company delayed its annual results presentation for the second consecutive year.

The presentation was supposed to be held on Thursday 13 August, but the retailer requested an extra week to complete accounts.

In a statement, the company said: “Due to the undoubted scrutiny of our accounts, management and our auditors RSM will take this extra week to robustly review the final accounts and ensure that all necessary disclosures have been completed.”

Experts are wary of what this year’s results could hold for the company. Professor of accounting Prem Sikka, @Premnsikka on Twitter, said: “The release of annual results at Mike Ashley’s Frasers Group – formerly Sports Direct – delayed again. Last year’s delayed results reported a €674m (£605m) tax bill from Belgium and auditors also resigned. What bombshell awaits this year’s delay?”

Following the news of Ashley’s £30m bid, share price for Frasers Group has gained over 2%. It is trading at approximately 290p. This is down by 38% since the beginning of the year, leaving the company currently valued at £1.5bn.

 

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.