6th Nov 2014 15:59
LONDON (Alliance News) - Sports Direct International PLC Thursday said it has increased its interest in Debenhams PLC to 12.7%, after selling its remaining 4.6% direct equity stake in the department store chain and replacing it with a put option for a 6.1% stake, following a similar deal made in January.
The new put option covers 74.1 million shares of Debenhams. Sports Direct is required to transfer cash collateral to cover its obligations under the put option, and the maximum exposure under the option is limited to around GBP46.0 million, said Sports Direct.
On January 16, Sports Direct also disposed of a 4.6% direct stake in Debenhams and entered into a put option agreement for a 6.6% stake. Sports Direct's maximum exposure from the January transaction was GBP64 million.
Collectively, the two put options represent a 12.7% interest in Debenhams' issued capital, Sports Direct said in a statement.
"Sports Direct continues to work together with Debenhams and looks forward to building a long-term relationship," it said .
Debenhams shares were up 4.0% late Thursday at 66.90 pence, while Sports Direct shares were up 0.1% at 645.50p.
By Joshua Warner; [email protected]; @JoshAlliance
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