Frasers Group offloads Sports Direct Malaysia in $150m deal

Frasers Group has agreed to sell 100% of its interest in Sports Direct Malaysia to its strategic partner MAP Active (PT MAP Aktif Adiperkasa Tbk) for approximately $150 million (£113.4 million).

Under the terms announced on 1 July, Frasers will enter a long-term agreement through which MAP Active will grow and develop the Sports Direct brand in Malaysia, with a continuing income stream payable to the British retail group.

The deal is still subject to final completion adjustments. The transaction brings Malaysia into a partnership structure already in place across Indonesia, the Philippines, Thailand, Vietnam and Cambodia.

For Frasers, the effect is a shift toward capital-light international expansion: the group realises cash from the sale, hands day-to-day execution to a local retail specialist, and retains financial participation in the market's future growth.

Six markets, one operator MAP Active's existing infrastructure and portfolio of distributed brands across Southeast Asia will now underpin Sports Direct operations in six markets.

The two companies have set a long-term ambition to open over 350 stores across the region, targeting a consumer base of more than 600 million people.

Michael Murray, CEO of Frasers Group, said: "MAP Active is a valued strategic partner, and this transaction further deepens our relationship as we accelerate Sports Direct's growth across Southeast Asia. Together, we are creating a strong platform to deliver our ambitious growth plans."

V.P. Sharma, Group CEO of MAP Active, added: "Leveraging 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 that create long-term value for both companies."

A busy period for Frasers Group

The Malaysia disposal comes during a period of deal activity for the group. In late June, Frasers Group said its €38-per-share takeover offer for Hugo Boss is final, putting an approximate value of €1.93 billion on the shares it has yet to buy. That bid followed six years of stake-building in the German fashion house, over which Frasers accumulated 26.58% of Hugo Boss shares.

Separately, Frasers launched a takeover bid for Australia's Accent Group at A$0.65 per share, which Accent's independent board committee unanimously rejected as "materially inadequate" on 29 June. The group also picked up a 5.77% position in Puma in March, lifted its financial exposure to ASOS to 29.26%, and has continued to expand its UK property portfolio through outlet and shopping centre acquisitions.

By contrast, the Malaysia sale converts a directly operated international business into a partner-led model while freeing up capital. The transaction remains subject to final completion adjustments.