16 January 2014
Sports Direct International plc
Disposal of 4.6% stake in Debenhams plc
Put Option Agreement in relation to a 6.6% stake in Debenhams plc
Sports Direct International plc ("Sports Direct"), the UK's leading sports retailer, announces that it has disposed of its 4.6 per cent stake in Debenhams plc ("Debenhams") (comprising 56,829,293 ordinary shares in Debenhams) and has, at the same time, entered into a put option agreement (the "Put Option") referencing 81,224,081 ordinary shares of Debenhams (representing 6.6 per cent of the issued share capital of Debenhams).
To the extent that the market price of Debenhams' ordinary shares is less than an agreed exercise price (the "Exercise Price") on expiry of the Put Option, Sports Direct has the right to elect whether to settle the Put Option by acquiring ordinary shares in Debenhams at the Exercise Price or by paying the cash settlement value of the Put Option.
Pursuant to the terms of the Put Option, the Company will receive a premium, which is payable on expiry of the Put Option. To the extent that the market price of Debenhams' ordinary shares is greater than the Exercise Price on expiry of the Put Options, Sports Direct will receive the premium and will have no further obligations.
Sports Direct is required to transfer cash collateral to cover its obligations under the Put Option. The amount of collateral required during the life of the Put Option can increase or decrease by reference to the underlying market price of Debenhams' ordinary shares. After taking into account the premium it will receive, the Group's maximum exposure under the Put Option is limited to approximately £64m.
As announced previously, Sports Direct wishes to explore options at an operational level to work together with Debenhams and is looking forward to meeting with Debenhams' senior management team in the near future. Sports Direct reiterates its intention to be a supportive stakeholder and create value in the interests of both Sports Direct's and Debenhams' shareholders.
For further information, please contact:
Sports Direct International plc 0845 129 9229
Dave Forsey - Chief Executive
Jeff Blue - Director, Strategic Development
Powerscourt 020 7250 1446
Notes to Editors
Sports Direct is the UK's leading sports retailer by revenue and operating profit, with approximately 400 stores across the UK. The Group provides an unrivalled range of products, offering exceptional quality and unbeatable value, from a wide variety of third-party and Group-owned brands, both in-store and online. Sports Direct operates in 19 countries in Europe, including Belgium, Austria, Slovenia, Portugal and France.
The Group has an extensive brand portfolio, comprising 28 internationally recognised sports, fashion and lifestyle brands including Dunlop, Slazenger, Everlast, Lonsdale and Karrimor.
Sports Direct was founded in 1982, listed on the London Stock Exchange in 2007 and is a constituent of the FTSE 100 index.
For more information please visit www.sportsdirectplc.com