Belfast Telegraph

Shares sale backfires on Ashley

by Graeme Evans

The value of Mike Ashley's stake in Sports Direct took a £300m hammering following a surprise move to sell some of his shares.

The FTSE 100 company slumped by 10% after Mr Ashley raised £204m in a sale on Monday that reduced his stake from 61.7% to 57.7%.

The disposal came just days after a shareholder revolt forced the company to scrap a scheme that could have rewarded the Newcastle United owner with a shares windfall worth potentially more than £70m.

The deputy executive chairman has not received a salary or bonus since the retailer floated in 2007.

Mr Ashley sold the shares to institutional investors at 850p, compared with a recent high of 924.5p earlier this month.

The move spooked the City, causing the stock to fall to around 800p and valuing it at nearly £4.8bn.

Mr Ashley recently snapped up a 11% stake in House of Fraser as part of attempts to muscle in at the last minute on the sale of the department store chain to Chinese conglomerate Sanpower.

Belfast Telegraph


From Belfast Telegraph