Sports Direct ups Debenhams stake with Â£33m shares deal
Mansfield-headquartered retailer Sports Direct has upped its stake in Debenhams after acquiring another 4.6 per cent in the department store chain.
The £33m deal takes the company's stake in Debenhams to past 11 per cent.
Sports Direct, controlled by Newcastle United owner Mike Ashley, began trialling concessions in Debenhams stores earlier this year.
It said in a statement to the Stock Exchange that it was looking forward to building the relationship.
Sports Direct been tied to a put option – a bet against Debenhams future share price – since January. The move could lead it to buying a 6.62 per cent stake in the chain.
The retailer's maximum exposure under the put option stands at £64m.
It follows the £43m bet Ashley's Sports Direct took last week that shares in beleaguered supermarket giant Tesco will recover after the recent slump caused by a string of bad news, including a £250m hole in its accounts.
Tesco's share price has continued to fall since Sports Direct announced to the City that it had taken the put option.