Put Option Agreement in relation to Tesco PLC

RNS Number : 5546S

Sports Direct International Plc

24 September 2014

 



25 September 2014

Sports Direct International plc

Put Option Agreement in relation to Tesco PLC

Sports Direct International plc ("Sports Direct"), the UK's leading sports retailer, announces that it has entered into a put option agreement (the "Put Option") with Goldman Sachs International referencing 23.0 million ordinary shares of Tesco plc (representing 0.28 per cent of the issued share capital of Tesco)⁽¹⁾.

To the extent that the market price of Tesco's 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 Tesco 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 Tesco's 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 Tesco's ordinary shares.  After taking into account the premium it will receive, Sports Direct's maximum exposure under the Put Option is limited to approximately £43m. 

This investment reflects Sports Direct's growing relationship with Tesco and belief in Tesco's long-term future.

(1) This announcement is being made as a result of the aggregation rule under Chapter 10 of the Listing Rules.

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

Rory Godson

Victoria Palmer-Moore

Greg Lawless

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 approximately 270 stores in 19 European countries, 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

 

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