Sports Direct further lifts holding in Debenhams
Mike Ashley’s Sports Direct has again upped its stake in department store chain Debenhams, it close to a level at which it must launch a takeover bid.
A stock exchange announcement yesterday showed that Sports Direct had raised its interest in Debenhams from 23 per cent to 29.7 per cent, the latest in a series of increases.
According to UK takeover rules, a shareholder holding shares worth 30 per cent or more of another company’s stock must launch a formal takeover bid. Ashley’s intentions in boosting his firm’s holding have been the subject of speculation over the past year, but it remains to be seen if the billionaire will attempt a full-blown takeover.
Debenhams, which issued a profit warning in January following weak Christmas trading, has a market value of around £350 million. Newcastle United owner Ashley has a history of building up positions in retailers, having previously bought stakes in JD Sports and House of Fraser.