Odey Asset Management, a London-based hedge fund, has acquired an 8.2% stake in The Finish Line, which could complicate Finish Line’s Merger with JD Sports.
In March, it was reported that JD Sports Fashion, the leading European retailer of sports, fashion, and outdoor brands, had agreed to buy Finish Line Inc. for a total of $558 million. However, Sports Direct International, a U.K. rival of JD Sports, is the second largest shareholder in Finish Line.
According to SGB Media, Odey Asset Management has held shares in Sports Direct International in the past. After the JD-Finish Line deal was announced, Sports Direct revealed that it owned nearly eight million shares in Finish Line — a whopping 19.3% stake. Of that interest, over 8% (3.65 million shares) are own directly, while the rest is held through contracts for difference with third parties.
The JD Sports–Finish Line merger could be complicated due to the stakes Sports Direct and Odey Asset Management hold. Sports Direct is believed to be the second largest shareholder in Finish Line, according to SGB Media.
Source: SGB Media