Sarah Shannon in London is reporting for Bloomberg News that Newcastle owner Mike Ashley has sold 25M shares of Sports Direct for around £100M, and that has reduced his share of the company from 69% to 64%.
Mike Ashley – Newcastle owner cashed in £100M of Sports Direct Shares
Ashley’s MASH Holdings Ltd. sold the 25M shares in a so-called accelerated bookbuilding trade, and the sale was completed at a price of 400 pence per share.
After the sale, the stock price dropped as much as 9.2% to 391 pence and was down to 7.3% at the beginning of trading today in London.
The 48-year-old Billionaire owns Newcastle United Football Club, and he had originally held 410.4 million shares, or 69% of the total stock of Sports Direct, according to data compiled by Bloomberg News.
It’s not unusual for executives to cash in some shares so they have some ready cash – but most of us wouldn’t know what to do with £100M – although we could probably think of some ways of how to use it.
Sports Direct reported excellent financial results last week, and third-quarter sales climbed a massive 21% to £589.5M, and that beat analyst’s estimate of only a 12% growth – so it’s not a bad time for Mike to sell some shares, after the uptick in the stock price following last week’s results.
And Newcastle are not doing too bad on the financial front either, and there is no reason for Newcastle to sell their best players – as was the case less than two years ago.
And finally, we can categorically deny the rumors that he sold his shares so that Newcastle can buy Lionel Messi from Barcelona – it’s simply not true. 😀
You can also reach Ed at firstname.lastname@example.org