London - UK sportswear retailer Sports Direct is reportedly set to gain close to 80 million pounds from a US deal, which sees its rival JD Sports acquire US athletic retailer The Finish Line Inc.
Sports Direct has quietly built up a 19.3 percent stake in Finish Line according to documents. At the moment Mike Ashley's sports good chain hold 7,957,800 shares in Finish Line. However, JD Sports entered into an agreement in March to acquire 100 percent of the issued and outstanding Finish Line shares at 13.50 dollars a share (9.81 pounds), which means that Sports Direct is set to receive up to 78.5 million pounds from its holding.
JD Sports acquisition of Finish Line was value 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. The acquisition would help JD Sports boost its global presence by setting foot in the US.