London - Sports Direct, the UK’s largest sportswear retailer, denies media claims that it is set to gain close to 80 million pounds from a deal JD Sports Fashion has made to acquire US sporting retailer The Finish Line Inc.
Sports Direct previously built up a 19.3 percent stake in Finish Line. Rival JD Sports signed an agreement in March to acquire 100 percent of the issued and outstanding shares in Finish Line for 13.50 US dollars (9.53 pounds) per share, which could see Sports Direct receive up to 78.5 million pounds from the sale of its shares.
However, Sports Direct issued a statement early on Wednesday morning stating that any gain it would receive from the sale would be “a fraction” of the 80 million pound figure. “A headline in the Daily Mail on 1 May 2018 referred to ‘Sports Direct’s £80m gain’ in relation to Sports Direct’s holding in Finish Line,” wrote Sports Direct in the statement. “This figure is wholly inaccurate, as any gain to Sports Direct would be a fraction of that amount.”
JD Sports impending acquisition of Finish Line was valued at 558 million US dollars (396 million pounds) at the end of March. Finish Line is currently one of the largest retailers of premium multi-branded athletic footwear, apparel and accessories in the US.