Findel gains more support to block Sports Direct appointment

River & Mercantile Asset Management, which owns 5.7% of Findel shares, is the latest to support the company by offering an irrevocable undertaking to vote against the appointment in extraordinary general meeting called by 19% shareholder Sports Direct and scheduled for 21 December.

Tosca Asset Management and Schroders have also provided such commitments and, combined with River & Mercantile, these three own 43.9% .

Findel, which is looking to sell its Kitbag.com sports merchandise website that competes with Sports Direct, has objected to Gardener joining its board as he "lacks the qualifications to be appointed as a director of a listed company" and his addition to the board "would compromise the independence of the board and would provide information and voice to one shareholder in preference to other shareholders".

The company also noted that the proposal was made "without any prior consultation".

Broker N+1Singer issued a note that highlighted potential synergies for Sports Direct if they were to bid for Findel, with analysis showing scope for £40m-plus of synergies over time.

Analysts said even without a takeover there was "significant potential value" in Findel not yet reflected in the share price, thanks to the turnaround in the education arm under the new management team and costs savings, with the board having reduced core debt substantially to £46m since the rescue refinancing from over £110m three years ago.

"In the shorter term look for further news on the disposal of Kitbag which should reduce working capital for the group and reduce core debt further."

Shares in Findel were up 3.2% at 235.27p just after midday in London on Wednesday.