Ashley goes shopping for bigger stake
TOON OWNER INCREASES HIS SHARE OF STORE TO NEARLY 30%
NEWCASTLE United owner Mike Ashley has once again increased his stake in department store chain Debenhams – but stopped short of carrying out a full takeover of the company.
The billionaire businessman acquired a further 6.7% stake in Debenhams through his business MASH Holdings, which is the parent company of Sports Direct.
The deal means that Mr Ashley now owns 29.7% of the department store, or 338.4m shares. Under UK law if a person owns more than 30% of the shares in a listed company, they are required to put in a formal offer to fully acquire the business.
Mr Ashley’s recent transaction could mean that he is waiting for the opportune time to acquire Debenhams.
Liam Rowley, head of strategic investments at Sports Direct, said: “We see huge value for both companies in a strategic partnership between Debenhams and Sports Direct. “There are obvious synergies that can be achieved through the integration of our respective web operations. We also see opportunities to work together internationally. “Importantly, there is scope for greater collaboration in the UK in order to roll out an elevated offering to consumers. We believe Sports Direct can complement Debenhams very well across the spectrum.” MASH Holdings has been gradually increasing its ownership of Debenhams over the last year, as the department store’s share price continued to fall. Following the news, shares in Debenhams were up 4.9% at 28.94p. Shares in Sports Direct International increased from 361.2p to 363.4p.