Sports Direct International plc, the UK's leading sports retailer, sold its 4.6 per cent stake in Debenhams plc and entered an additional put option contract that nearly doubled its potential stake in the British department store to 12.7 percent.

Sports Direct first disclosed it had taken a stake in Debenhams in January as part of a growing partnership under which Sports Direct is opening shop-in-shops in Debenhams stores.

Sports Direct announced Nov. 6 that it entered a second put option contract covering 6.1 percent of Debeham's ordinary shares after selling its 4.1 percent direct share of the company. The option gives Sports Direct the right to either: acquire 6.1 percent of Debenhams' ordinary shares if the value of those shares falls below an agreed upon, but undisclosed exercise price when the put option expires; or pay owners of the contracted shares the cash settlement value of the put option. To the extent that the market price of Debenhams' ordinary shares is greater than the exercise price on expiry of the put option, Sports Direct will be paid a premium and have no further obligations.

Sports Direct disclosed that its maximum exposure under the put option is approximately 6 million, which raises its total maximum exposure related to put options on Debehhams' ordinary shares.  Sports Direct already had a maximum exposure of approximately 4 million under a put option on a 6.6 per cent stake in Debenhams in January, 2014.

At that time, Sports Direct announced it was investing in the department store to build a long-term relationship.