A legal action by Irish shareholders in the Heatons retail stores arising out of an agreement to sell the shareholding to UK Sports Direct International Plc has been adjourned to next year.
In High Court proceedings, Katipo Ltd, Mark Heaton, Hugh Heaton, and John O'Neill claim Sports Direct International Plc (SDI) is refusing to comply with parts of an agreement concerning sale of shares in a company, Warrnambol, to SDI.
Warrnambol operates a chain of retail stores in Ireland trading under the Heatons and Sports World brand.
The Irish shareholders had owned 50 per cent of the shares in Warrnambool, with the remaining shareholding owned by SDI. It is claimed SDI had last October entered into an agreement to acquire the Irish group outright for €48 million.
The plaintiffs claim it was agreed, as part of the sale with SDI, they would receive a certificate from Warrnambol’s auditors to the effect that Section 980 of the 1997 Taxes Consolidation Act did not apply. That has not been done, it is alleged.
Katipo Ltd owns the shares which are subject of the sale while Mark and Hugh Heaton, and Mr O’Neill, are shareholders.
Mike Ashley
SDI is owned by UK businessman and billionaire Mike Ashley, who also owns English premier league football club Newcastle United FC plus a minority share in Scottish championship side, Glasgow Rangers FC.
As part of their action, the shareholders want orders including an injunction compelling SDI to pay the full price as defined in an agreement in respect of shares without making any deduction for Capital Gains Tax.
The injunction application is opposed by SDI and was due to be heard at the High Court on Thursday by Mr Justice David Keane.
Following discussions between the parties, Michael Cush SC, for the plaintiffs, said the parties had come to an agreement over how the matter should proceed.
Paul Gallagher SC, for SDI, said the injunction application would take two days to hear, whereas the full hearing of the matter would be concluded in three days.
Mr Justice Paul Gilligan agreed to fix a date for the hearing of the full action in early March.
