Sports Direct founder Mike Ashley is understood to have bought 23% of JJB Sports’ shares, after the liquidator of Kaupthing, which had seized a key shareholding in the business from former chief executive Chris Ronnie, offloaded its stake.
According to reports, Ashley bought around 23% of Ronnie’s old stake, which transferred to Kaupthing some time last year, for about 11p per share.
The deal would give Ashley a total shareholding in JJB Sports of around 28%. He already held a 5% stake in the business.
JJB Sports’ shares rose around 25% yesterday, closing at 11.25p last night.
JJB Sports is in the process of proposing a Company Voluntary Agreement, in an attempt to offload around 140 of its stores and shift its remaining shops on to monthly rents.