Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Sports Direct buys 4.7% stake in JJB Sports

Sports Direct has splashed out £3.4m for a 4.7% stake in its struggling rival JJB Sports.

Sports Direct bought 11.9 million shares at 28.5p per share in rival business JJB Sports on Friday evening. The shares were newly issued.

Sports Direct also holds around 42.9 million shares in JJB Sports via contracts for difference.

Friday's acquisition has fuelled speculation Sports Direct could make a bid for JJB Sports. However, the sportswear retailer has previously held stakes in other listed companies including Blacks Leisure, without tabling an offer.

Sports Direct said that the stake acquisition was a "strategic investment" which was "consistent with the board's policy of making and retaining strategic investments where, and for as long as, the board believes the investment provides the company with the opportunity to gain a strategic commercial advantage".

JJB chief executive Chris Ronnie said the deal would "put JJB on a more secure financial footing and provide further flexibility for the board to take positive steps that provide stability for the group in this tough retail environment".

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.