"Ashley ups the ante on JJB"
MIKE Ashley, the controversial tycoon is reported to have upped his stake in major rival JJB Sports to 29%.
The founder of Sports Direct, which knocked Wigan-based JJB off top spot as the leading player in the market, is thought to have bought shares released into the market by the administrators of Icelandic bank Kaupthing, which took over a 27% holding formerly controlled by ex-JJB chief Chris Ronnie.
The Ronnie stake was sold in two chunks – 23.3% was sold by PWC and 3% by Ernst & Young, representing Kauphing’s UK and Isle of Man-registered interests.
If correct Mr Ashley, who owns Newcastle United football club, has reached the limit that he is allowed to hold under City rules without bidding for the ailing company.
JJB has not yet received notification of who has bought the shares, but expects to do so by the end of the week.
The retailer, which is in the throes of a huge turnaround led by a new management team, needs its shareholders and the landlords of 120 closed-down shops to vote for a Company Voluntary Agreement, which will effectively prevent it from going bust.
While Mr Ashley may vote against the CVA, as it is in his interests for JJB to fail, other investors and the creditors are likely to back it, as JJB has warned that the firm will go into administration if it doesn’t receive approval.
