Findel has rejected the £139m takeover bid that Sports Direct lodged earlier today.

The sportswear giant led by Mike Ashley made a mandatory cash offer for the retailer at 161 pence per share.

The bid came after Ashley purchased a further 6 million shares in Findel, taking his stake in the business to 36.8% and obliging him to make a bid under the Takeover Code.

However, Findel said its board believes “the mandatory offer significantly undervalues the group and its future prospects and is unanimous in its rejection of the offer”.

If successful, Ashley’s bid would have added Findel to the list of companies he has acquired in recent months including, Evans Cycles and House of Fraser.

The retail entrepreneur also owns significant shares in retailers including Debenhams, French Connection and Game Digital.

Sports Direct said earlier it “continues to recognise the value and quality of the Findel business, and sees the offer as an opportunity to give increased support to Findel to maximise the value of its existing business”.