Sports Direct founder Mike Ashley has set out plans to buy back a further 5 per cent of its shares, sparking fresh speculation that he plans to buy back the business he floated 10 months ago.

If the bid is approved at an extraordinary meeting next month, Ashley’s stake in the business would increase to about 72 per cent. Ashley has denied plans to buy back the business, but has had a tumultuous relationship with the City since it floated.

When it floated, Ashley sold a 43 per cent stake in the business for more than£900 million, leaving him with a 57 per cent stake. He now holds 68 per cent after an aggressive period of buying back shares.

Shareholders gave Ashley the go ahead to buy back 10 per cent of the group’s shares at its AGM in September and he has used this quota up already.

Since its float, Sports Direct’s non-executive chairman has resigned and its own advisors have downgraded profits. Last week, it issued a profit warning saying that England shirt sales would be hit after the team failed to qualify for the Euro 2008 finals. Shares in Sports Direct have continued to fall, to below 100p earlier this month. Ashley floated the business at 300p in February.

Topics