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Ashley Picks Up 100m - But It Won't Go Into NUFC!

26 Feb 2013 13:34:40

Ashley Picks Up 100m - But It Won't Go Into NUFC!

Newcastle United owner Mike Ashley has raised £100 million after selling a 4% stake in his company.

But Toon fans should not get excited ... it won't be going into Newcastle United FC.

The share placing caught the market by surprise, leaving FTSE 250 Index-listed Sports Direct International as much as 7% lower and sparking speculation over his plans for the cash haul.

It comes amid mounting rumours over Mr Ashley's drive to expand his retail empire, with the entrepreneur said to be interested in the House of Fraser department store and collapsed fashion chain Republic.

Independent retail analyst Nick Bubb said he believed Mr Ashley's share sale was made in response to requests to free-up stock to investors. He said: "I think he's doing it to improve liquidity in the stock - he doesn't need the money and if he was intending to bid for retail assets, he would do that through Sports Direct."

Source: Newcastle United Mad


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