Sports Direct takes Iconix and Finish Line stakes, wants to "build relationships"

By

Sandra Halliday

Published
May 18, 2017

Sports Direct said late on Thursday that it has taken strategic stakes in US-based businesses Iconix and Finish Line.

The retail giant, which is headed by billionaire Mike Ashley, said that “consistent with its longstanding strategy of taking strategic stakes, it now holds… indirect economic interests through contracts for difference with Monecor (London) Ltd” adding up to 6.98m shares in Iconix Brand Group and and 3.71m shares of Finish Line.

Those stakes give it 12.23% of the issued common stock of the former and 9.21% of the latter.

The company said that the main rationale for these purchases is to allow Sports Direct to “hopefully build a relationship and develop commercial partnerships with the relevant parties. They also help the company to build relationships with key suppliers and brands.”

Sports Direct has been building its holdings a number of businesses recently, including Debenhams and French Connection in the UK, among others. However it has continuously stressed that its purchases do not mean it is going to attempt a takeover of the firms that it is interested in.