Sports Direct reveals interest in taking over rival Blacks Leisure

Confirmation of its takeover interest comes a week after Sports Direct –controlled by Newcastle United owner Mike Ashley – scuppered

fundraising plans being put forward by Blacks.

Sports Direct had earlier snapped up 28.5 per cent of Blacks shares and its aggressive moves sparked speculation it was planning a bid for its high street rival.

In light of the Sports Direct takeover interest, Blacks said it would now look to secure an alternative fundraising to support its recovery efforts, which would only require 50 per cent shareholder approval.

Blacks, which operates its own brand shops as well as the Millets chain, was last week forced to adjourn a shareholder ballot on a 20m fundraising amid tense negotiations with Sports Direct.

It planned to use the funds on up to 35 new stores and the refurbishment of existing sites as part of a revival plan.

Blacks needed 75 per cent shareholder approval for the fundraising to go through, but would have been unable to see it passed without the backing of major investor Sports Direct.

Blacks said it had held "a number of discussions with Sports Direct" since the meeting was postponed.

It added that following news of Sports Direct's acquisition aims, it "intends to pursue an alternative fundraising for the company, but one which will involve only an ordinary resolution being passed – requiring the support of a simple majority of shares being voted on the resolution – in the absence of any concrete takeover proposals from Sports Direct that the board feels it can recommend."

Sports Direct had vowed to vote down the original fundraising when it secured the stake in Blacks.

Blacks has suffered a torrid couple of years, leading to a restructuring and closure of 87 loss-making stores in the fourth

quarter of 2009 after securing a rescue deal with its landlords.