Shares in Sports Direct dropped by 9% following the announcement yesterday (April 8) that Mike Ashley has sold £217m worth of shares.
The sale appeared to have shaken investor confidence in the sportswear giant as shares fell to 811p, down from the 850p at which Ashley sold the 25 million shares to Goldman Sachs.
Following the disposal, Ashley’s investment vehicle Mash Holdings owns 345.4 million shares, or 57.7% of the share capital of Sports Direct. Ashley is now not allowed to sell or dispose of any further Sports Direct shares for 150 days from April 7.
The move comes just days after the retailer’s investors rejected plans for a bonus scheme that would have seen the tycoon rake in £72m of free stock.
As reported by Drapers last week Ashley acquired an 11% stake in House of Fraser from entrepreneur Sir Tom Hunter.