Frasers Group is to offload its entire interest in Sports Direct Malaysia in a $150m deal, it was announced on Wednesday.
Source: Sharecast
The FTSE 250 retailer - which as well as House of Fraser and Sports Direct owns Evans Cycles, Everlast and Game, among various others - said it was selling 100% of its interest to its partner, MAP Active. Frasers works with MAP across Indonesia, Philippines, Thailand, Vietnam and Cambodia.
Under the terms of the deal, Frasers confirmed it will receive a "continuing income stream" as MAP Active develops and grows Sports Direct Malaysia, as well as a $150m payment.
Michael Murray, chief executive, said the deal would further strengthen its relationship with MAP Active, which he called a "valued" partner. "Together we are creating a strong platform to deliver our ambitious growth plans," he added.
MAP Active’s VP Sharma said: "Leveraging on our local expertise and regional retail network, we look forward to offering more of Sports Direct’s world-class offerings to our customers across the region, and unlocking new opportunities."
As at 1030 BST, shares in Frasers were up 2% at 735.5p.
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