Sports Direct has responded to claims that it is set to make £80 million when its rival JD Sports completes its purchase of US retailer Finish Line.
Earlier this week it was reported that Mike Ashley’s Sports Direct had acquired a 19.3 per cent stake in Finish Line, an American footwear retailer which JD Sports agreed to acquire in March for $558 million (£396 million).
Yesterday the Daily Mail reported that Sports Direct would stand to make £80 million from its rival’s takeover deal, but the retailer has since branded this “wholly innacurate”.
“A headline in the Daily Mail on 1 May 2018 referred to ‘Sports Direct’s £80 million gain’ in relation to Sports Direct’s holding in Finish Line,” it stated.
“This figure is wholly inaccurate, as any gain to Sports Direct would be a fraction of that amount.”
JD’s acquisition is now pending approval from shareholders of both parties, but would see it acquire 100 per cent of the business, including 556 stores and 375 branded concessions across the US should it go ahead.
This would provide the retailer, which posted record profit growth of 24 per cent to £294.5 million over the last year, with a significant foothold in the US market.