Sports Direct bets on Tesco recovery

Billionaire Mike Ashley’s Sports Direct International made a £43m (€55m) bet on a recovery in Tesco’s share price, days after the biggest UK grocer said it overstated its profit forecast.

Sports Direct, Britain’s largest sports-goods retailer, said yesterday it entered a so-called put option agreement with Goldman Sachs over 23 million Tesco shares, or the equivalent 0.28% of the company’s share capital.

“The investment reflects Sports Direct’s growing relationship with Tesco and belief in Tesco’s long-term future,” Sports Direct said.