Mike Ashley ups Sports Direct’s stake in Debenhams
Mike Ashley’s Sports Direct has upped its stake in high street retailer Debenhams to more than a quarter.
Debenhams shares were up over four per cent at lunchtime after it was revealed that Sports Direct’s stake is now 29.7 per cent.
This brings it close to the threshold at which a formal takeover bid must be launched.
The company said it saw potential for a “strategic partnership” between the two businesses, raising investor hopes of a possible integration.
Liam Rowley, head of strategic investments at Sports Direct, said web operations could be integrated there were opportunities to work together internationally.
“We believe Sports Direct can complement Debenhams very well across the spectrum,” he said.
Shares in Sports Direct were down 0.8 per cent during lunchtime.
Sports Direct has built up its investments in other companies over hte past few years, and has created tie-ups such as Game Digitals’s e-sports areas in its stores.