Billionaire Mike Ashley is selling Sports Direct shares worth £117m

His remaining stake is now worth £2.5bn.

Billionaire Mike Ashley is selling off 15.4 million Sports Direct shares worth £117m.

The shares represent a 2.6% stake in Sport Direct, reducing Ashley’s total stake in the sports retailer to 55%. His remaining stake is now worth £2.5bn.

After the news broke, Sports Direct share price dropped by 5% to 722.5p.

Ashley, who also owns Newcastle United soccer club, draws no salary from Sports Direct and had his bonus rejected twice last year by shareholders.

In 2014, he bought stakes in various retailers through Sports Direct including an 11% stake in House of Fraser and a 4.6% Debenhams stake.

In September last year, Ashley entered into a put option for 23 million of Tesco’s shares with Goldman Sachs.

In a statement, Goldman Sachs, which is handling the sale, said: “Goldman Sachs International (GSI) intends to sell secondary placing up to 15.4 million shares in Sports Direct International.

“Shares would be acquired for resale by GSI from Mash Holdings, which is wholly owned by Mike Ashley

“Bookbuilding will commence immediately and will be managed by GSI as sole bookrunner.”