Hyde, Greater Manchester-based online retail and education business Findel said on Monday it received a letter of support from its second-largest shareholder Schroders Investment Management for its rejection of a £139.2 million buyout offer from Mike Ashley’s Sports Direct.

Schroders controls 18.85% of Findel’s issued share capital.

In its letter, Schroders confirmed that “it remains supportive of Findel and its management team and the operational and financial progress that the group has made under the leadership of Phil Maudsley and Stuart Caldwell.”

Schroders added: “Furthermore, having carefully considered the merits of the offer and the arguments advanced by the board of Findel for its rejection, Schroders agrees with the conclusion of the Findel board that the offer significantly undervalues the future prospects of Findel and as such, our current intention is not to accept the offer on the terms proposed.”

Findel chairman Ian Burke said: “We are grateful for the support of our second largest shareholder in Schroders, and continue to recommend strongly that all other shareholders take no action in respect of the offer from Sports Direct.”