Newcastle owner Mike Ashley has at least one of his businesses doing well as Sports Direct with the news that the company had revenues in the nine weeks to the end of September which were up 15.1% to £463.7M.
Mike Ashley – nets another £106M
And since the share price is high the Newcastle owner has netted £106M from the sale of a 2.7 per cent stake in Sports Direct, which are held by Mike’s investment holding company Mash Holdings.
A regulatory disclosure from Sports Direct revealed Mr Ashley sold 16M shares at 662.5p a share, at a 7% discount to yesterday’s closing price of 712p, which netted him exactly £106M.
MASH Holdings Limited now owns 61.7% of Sports Direct, worth around £2.5B at today’s morning price of 675p.
Mike did the same thing in February when he made £100M selling 4.18% of the company at 400p a share, and that was his first share sale since he floated the company back in 2007, and with that windfall bought Newcastle United in June of that year.
In July of this year Sports Direct posted another record financial year with sales topping £2B for the first time, and pre-tax profit jumping by 40% to £207.2M.
Maybe it’s all that (free?) world-wide publicity he’s getting for Sports Direct at St. James Park?
It seems that Mike is trying to diversify away from investment in the company he formed in the 1980s, but maybe it’s just so that he has some pocket change available? 😀