Sports Direct International Plc New Put Option Agreement entered (0624D)
January 23 2015 - 1:18PM
UK Regulatory
TIDMSPD
RNS Number : 0624D
Sports Direct International Plc
23 January 2015
23 January 2015
Sports Direct International plc
Termination of Put Option Agreement in relation to 6.6% stake in
Debenhams plc
New Put Option Agreement in relation to a 10.5% stake in
Debenhams plc
Sports Direct International plc ("Sports Direct" or "the
Group"), the UK's leading sports retailer, announces that it has
terminated the put option over a 6.6 per cent stake in Debenhams
plc ("Debenhams") that was announced on 16 January 2014 (comprising
81,224,081 ordinary shares in Debenhams) and has, at the same time,
entered into a new Put Option Agreement (the "Put Option") with
Goldman Sachs International referencing 128,927,113 ordinary shares
of Debenhams (representing 10.5 per cent of the issued share
capital of Debenhams).
To the extent that the market price of Debenhams' ordinary
shares is less than an agreed exercise price (the "Exercise Price")
on expiry of the Put Option, Sports Direct may be required to
settle the Put Option by acquiring ordinary shares in Debenhams at
the Exercise Price.
Pursuant to the terms of the Put Option, Sports Direct will
receive a premium, which is payable on expiry of the Put Option. To
the extent that the market price of Debenhams' ordinary shares is
greater than the Exercise Price on expiry of the Put Option, Sports
Direct will receive the premium and will have no further
obligations.
Sports Direct is required to transfer cash collateral to cover
its obligations under the Put Option. The amount of collateral
required during the life of the Put Option can increase or decrease
by reference to the underlying market price of Debenhams' ordinary
shares. After taking into account the premium it will receive, the
Group's maximum exposure under the Put Option is limited to
approximately GBP85m.
Sports Direct is making this announcement pursuant to Listing
Rule 10.2.10(1)(b) which requires the aggregation of the Group's
maximum exposure under the Put Option with Sports Direct's maximum
exposure of approximately GBP46 million under the put option over a
6.1 per cent stake in Debenhams (referencing 74,185,742 ordinary
shares) that was announced on 6 November 2014. Collectively, these
investments currently represent a 16.6 per cent interest in
Debenhams' ordinary shares.
Sports Direct reiterates its intention to be a supportive
stakeholder and create value in the interests of both Sports
Direct's and Debenhams' shareholders. Sports Direct does not intend
to make an offer for Debenhams and would encourage the Debenhams'
leadership team to concentrate fully on delivering their strategic
plans.
For further information, please contact:
Sports Direct International plc 0845 129 9229
Dave Forsey - Chief Executive
Jeff Blue - Director, Strategic Development
Powerscourt 020 7250 1446
Rory Godson
Victoria Palmer-Moore
Greg Lawless
Notes to Editors
Sports Direct is the UK's leading sports retailer by revenue and
operating profit, with approximately 400 stores across the UK. The
Group provides an unrivalled range of products, offering
exceptional quality and unbeatable value, from a wide variety of
third-party and Group-owned brands, both in-store and online.
Sports Direct operates in 19 countries in Europe, including
Belgium, Austria, Slovenia, Portugal and France.
The Group has an extensive brand portfolio, comprising 28
internationally recognised sports, fashion and lifestyle brands
including Dunlop, Slazenger, Everlast, Lonsdale and Karrimor.
Sports Direct was founded in 1982, listed on the London Stock
Exchange in 2007 and is a constituent of the FTSE 100 index.
For more information please visit www.sportsdirectplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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