Sports Direct has entered into a put option agreement with Tesco

Sports Direct has entered into a put option agreement with Tesco

UK retailer Sports Direct International has made a GBP43m (US$70.1) bet on shares in beleaguered retailer Tesco.

The sports group has entered into a put option agreement with Goldman Sachs referencing 23m of Tesco shares, representing 0.28% of the issued share capital of the retailer.

"This investment reflects Sports Direct's growing relationship with Tesco and belief in Tesco's long-term future," the company said.

The news comes as Tesco's second-biggest shareholder BlackRock disposed of some of its shares. The investment firm is now understood to be holding around 4.98%.

On Monday, Tesco saw its share price fall as the UK retail behemoth revealed a GBP250m (U$408.1m) profit overstatement in its first-half accounts.

New CEO Dave Lewis said it had uncovered "a serious issue" within its accounts following preliminary investigations into its UK food business.

This was followed by news that Tesco had parachuted new CFO Alan Stewart in with immediate effect. He was due to start on 1 December.

He arrives from Marks & Spencer where he was also CFO, and succeeds Laurie McIlwee, who left just over a week ago, following his resignation in April.