Shares in retailer Sports Direct fell more than 6% on Wednesday after founder Mike Ashley sold more than £100M ($151M) worth of shares, according to Felsted & Blitz of the FINANCIAL TIMES. The share placing, by Goldman Sachs, takes Ashley's stake in the sportswear retailer from about 58% to just more than 55%. In the past two years, Ashley, who founded Sports Direct in '82, has cut his stake from 68.5%. Sports Direct said on Wednesday that the shares, owned by Ashley's investment vehicle Mash Holdings, were sold at 720p, making the stake worth £110.9M ($167.5M). Sports Direct declined to comment "on the reason for the sale." Previous reductions in Ashley's holdings "were attributed to improving liquidity in the stock after the small number of available shares had become an issue for investors" (FT, 1/21). In London, Robert Lea reported while the reasons for the share sale "were not stated, its timing is likely to inflame the situation" at Scottish Championship side Rangers. Ashley's "apparent interest in taking control at Rangers has been regarded as highly controversial because of his ownership south of the border" of EPL side Newcastle United. Even if Ashley does not take control of a majority shareholding in the club, "he is regarded as attempting to exert control by lending Rangers money." The raising of cash from the sale of shares at Sports Direct, while "potentially material to the future of Rangers," is pocket money to Ashley (LONDON TIMES, 1/21).
