Sports Direct to acquire remaining 50 percent shares in Heatons

British sporting goods chain Sports Direct has announced that it will acquire the remaining shares of Irish department store Heatons. Sports Direct currently holds half of the stock in the latter.

Sports Direct, founded by billionaire football club owner Mike Ashley, said it has entered into a 47.5 million euros sale and purchase agreement with Sandra Minor to purchase its shares in Warrnambool, the holding company of Heatons.

Once the sale has been completed, Ashley’s total stake in Sports Direct will fall from 57.7 percent to 55.14 percent, although the Sports Direct founder will pocket 110 million pounds from the share sale, reports the ‘Irish Times’.

“We look forward to accelerating investment into the existing store portfolio and strengthening the Heatons and Sports Direct brands across Ireland,” said Dave Forsey, chief executive of Sports Direct.

In this vein, Sports Direct has also entered into a conditional put and call option agreement with Mark Heaton, Hugh Heaton, John O’Neill, Warrnambool and Katipo Limited in relation to the remaining shares in Warrnambool - which also owns and operates five standalone Sports Direct stores in Ireland - which are not already owned by Sports Direct.

Sports Direct said the deal will be funded from the group’s operating cashflow and existing bank facilities.

Both agreements are conditional upon clearance from the Competition and Consumer Protection Commission.