Sports Direct increases bet on Debenhams

Alongside a long-running put-option taken out over 129m or 10.5% of Debenhams' shares, the sports mogul increased the size of a separate contract-for-difference for a further 6.58% of the department store group's stock.

The CFD combined with the put option takes Sports Direct's total stake to 17.08%.

At the end of March, Ashley lifted the stake from 13.4% to 16.09%, having earlier in the month taken it up to just over 11% for the first time since his last piece of stake-building in June 2015.

The Newcastle United owner first bought the put option in January 2014, when the two retailers began a commercial collaboration earlier in 2014, as the department store group trialled Sports Direct concessions in parts of its estate.

Another £33m spot of dealing later that year took the total beneficial interest in Debenhams to 11.22%.

With a put option giving the holder the right, but not the obligation, to sell the underlying security at a defined price, analysts have suggested the structure of the deal implied Ashley was wanting exposure to Debenhams but only if the shares dip.