Mike Ashley’s Frasers Group has launched a £70m share buyback scheme today, after the fashion retailer splashed the cash on a recent buying spree.
The FTSE 100 group, which includes House of Fraser, Sports Direct and Jack Wills among others, snapped up failing Studio Retail Group in February, after pledging to spend £60m on new shares last summer.
It comes just days before British billionaire Mike Ashley, previously the owner of Newcastle United football club, hands the reins for the retail empire to his daughter’s partner, Michael Murray.
Murray, currently Frasers so-called head of elevation, is in line to receive a windfall of £20.9m for his consultancy services, before taking the helm on May 1.
The cash will go through his MM Prop Consultancy Limited, which is entitled to up to 25 per cent of any value created by services provided to Frasers.
“The agreement with MM Prop Consultancy Limited has delivered significant financial and strategic value for the group and its stakeholders,” Frasers said in a statement on Friday.
“We are delighted that Michael will now drive us forward in our elevation journey, which we are already making strong progress with.”