Sports Direct takes profits from JD stake

14th Mar 2016 09:51

(ShareCast News) - Sports Direct has taken some profits from its investment in rival JD Sports, selling 1.08m shares it was revealed on Monday. The FTSE 100 sports goods retailer, whose canny chief Mike Ashley has a history of short- and long-term investments in rivals, took its contract for difference down to 13.42m shares or a 6.895% stake, pared back from the 14.5m or 7.449% is had since last selling down the stake in December. Given a price of around 1,160 last Wednesday, Sports Direct reaped close to £12.5m before costs. JD Sports shares surged from just below £4.80 to £10.40 during 2015 and have kept on going, while Sports Direct has stumbled from last summer's £8 high to below £4 amid criticism of the way workers are treated, a profit warning in January and recent wrangling with parliament. In 2008, with JD trading at not much more than £1, Ashley took the position in the John David Group as it was called then, to 12.4%. Broker Jefferies last month called on founder Ashley to take the company private, saying: "Recent events highlight a widening gulf between Mike Ashley's long-term vision and growing governance concerns in the City."