Sports Direct takes put option on Tesco

Sports Direct has entered into a put option on a small stake in troubled supermarket Tesco.

In a statement, the sporting goods retailer said the agreement with Goldman Sachs referenced 23 million Tesco shares, representing a 0.28% stake in the supermarket.

The option is worth up to £43 million and follows news on Monday that Tesco had overstated its half year profit forecast by £250 million.

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

Earlier this year, the retailer made a bet on the share price of department store Debenhams in a similar option agreement.

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