Sports Direct International PLC (LON:SPD) on Monday disclosed a strategic investment in Finish Line Inc (LON:NASDAQ:FINL) just days after rival JD Sports Fashion Plc (LON:JD. agreed to buy the US sportswear retailer.
In a statement, Mike Ashley’s Sports Direct said it now holds almost 8mln shares in Finish Line, representing a 19.3% stake.
Of this interest, 3.65mln shares or over 8% of the company is owned directly, and the rest is held through contracts for difference with third parties.
Shares in Sports Direct rose 1% to 410p in morning trading.
Last week, it emerged that JD Sports was to buy Finish Line in a deal valued at US$558mln, subject to approval from shareholders.
READ: JD Sports to buy US firm Finish Line for US$558mln as part of global expansion
Sports Direct, which is the second-largest shareholder in Finish Line, is yet to comment on the deal.
In 2011, Mike Ashely bragged at a meeting with representatives that he would “finish off” JD Sports.
But JD Sports seems to have had the last laugh, turning a record profit last year while Sports Direct’s sales in the UK have lagged in a tough UK retail market.
READ: JD Sports sprints higher as athleisure craze helps to drive record profits
Sports Direct, which has a reputation for investing in rival retailers, also said on Monday that it now owns 5.6mln shares in Iconix Brand Group Inc. The shares represent a 8.9% holding through contracts for difference with third parties.
READ: Mike Ashley's Sports Direct slumps as first half profits and UK sales drop
Iconix is a US company that owns, licenses, and markets a portfolio of consumer brands that includes Artful Dodger, Candie's, Bongo, Joe Boxer, Rampage, London Fog, Mossimo and Cannon.