© Reuters. FILE PHOTO: Mike Ashley, founder and majority shareholder of sportwear retailer Sports Direct, arrives at the company’s AGM, at the company’s headquarters in Shirebrook

(Reuters) – Sports Direct (LON:) chief executive Mike Ashley has offered to underwrite a 150 million pound ($195.65 million) rights issue at Debenhams on condition that he is named CEO of the department store chain, the Financial Times reported on Saturday, citing two sources.

Debenhams secured 200 million pounds in new funds last week but warned shareholders that it still faced being wiped out unless it secured financial support from Sports Direct, which holds a near 30 percent stake.

Debenhams said Sports Direct needed to either make a firm offer for the group, underwrite a rights issue, or provide debt funding if it wanted to prevent Debenhams’ ownership falling into the hands of lenders.

In a letter to the Debenhams board dated April 5, Sports Direct said it would be willing to underwrite 150 million pounds in cash if Ashley was appointed as Debenhams’ new chief executive, the FT said.

Sports Direct was not immediately available for a comment and Debenhams declined to comment on the report.

Last year, Sports Direct bought department store chain House of Fraser out of administration and has been trying to wrest control of Debenhams for months.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link