British retailer Sports Direct International PLC is proposing to acquire the remaining shares it does not already own in outdoor soccer center operator Goals Soccer Centres PLC for 5 pence per share.
Sports Direct is the largest shareholder in Goals Soccer with 18.93% ownership. The retailer's offer on Sept. 5 was in response to Goals Soccer's invitation to bid for the company and its assets Aug. 29.
Goals Soccer's decision to sell itself comes amid an ongoing investigation into the misstatement of historic financial statements of the company, which led to its shares being suspended from trading in March. The company's last closing price before its shares were suspended from trading was 27.20 pence March 27.
In August, Goals Soccer disclosed that the financial misstatements dated back to at least 2010.
Sports Direct previously pushed for the appointment of corporate investigator Kroll to do an independent report on Goals Soccer and to make the findings accessible to all shareholders.
However, Goals Soccer's board said the idea "is not appropriate and not in shareholder's best interests given, in particular, that it would be disruptive to the ongoing investigations."
In the latest release, Goals Soccer said it is reviewing Sports Direct's proposal to buy out the company.
"There can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made," Goals Soccer said.
Sports Direct's stock closed up 0.57% to £2.81 on Sept. 23. Meanwhile, Goals Soccer is expected to cease trading on AIM. Sports Direct said it believes "an extension [of the suspension] should be achievable if the board of Goals were committed to achieving it."
Sports Direct said it is offering to buy Goals Soccer because the latter's board is not committed to maintaining the company's listing and is instead only focused on pursuing the sale, "depriving Goals' shareholders of the ability to vote on it."
For its part, Goals Soccer said its board "remains committed to looking after the interests of all stakeholders."
