Sports Direct owner Mike Ashley has sold his shareholding in Rangers.

The businessman owned a 8.9% stake in Rangers International Football Club PLC through his Mash Holdings Limited company.

On Friday, the Club 1872 supporters group announced it had purchased half of the shares alongside Julian Juul Wolhardt, described as a chief executive of a "Hong Kong-based private equity firm", who bought the other chunk.

The development comes after Rangers chairman Dave King announced earlier this week that a controversial retail deal with Mr Ashley's Sports Direct group had been renegotiated.

Prior to the deal with Mr Ashley, the Club 1872 Shares CIC had a 6.25% stake in Rangers International Football Club PLC.

The move should see the group increase its holding to around 10.7%, which it described as a "significant marker". It means the fans organisation holds the second largest block in Rangers International, behind Mr King's New Oasis Asset Limited on 14.5%.

A spokesman for Club 1872 said: "We are delighted that our members' support for Club 1872 has brought us to a point where we can acquire those shares and complete the process of restoring control of RIFC (Rangers International Football Club) to those who view the footballing success of Rangers FC as being just as important as RIFC's careful stewardship financially.

"Club 1872 allows Rangers supporters to help safeguard the future of our club. Taking our shareholding above 10% puts us well on our way to that goal. Our next ambition is to reach out to those Rangers supporters who are not already members of Club 1872 and encourage them to join. Together we can achieve great things for our club."

In the media announcement about the development, new shareholder Mr Wolhardt was said to be chief executive of Dehong Capital Partners, a company established this year.

The 44-year-old was previously a partner at Asian private equity firm KKR and worked for Morgan Stanley's private equity business in China.

He has acquired a 4.46% stake in Rangers International. He said: "I am delighted to become an RIFC shareholder. I have a long held love for Scotland and football and I am keen to see Rangers FC unlock its considerable commercial potential.

"With the successful restructuring of the retail operations, RIFC is now on a firm financial footing and I look forward to being a part of its exciting future."

The departure of Mr Ashley as a major power holder in Rangers International comes after chairman Mr King failed in his attempt to get approval for a new share issue at 2016's annual general meeting.

The Johannesburg-based businessman wanted to offer shares to new external parties without having to extend the proposal to existing shareholders.

Mr King failed to secure the required 75% backing by 0.5% at the meeting.

Earlier this year Mr King was found by the Takeover Panel to have breached financial rules when he seized power in 2015.

The regulator found he had "acted in concert" with the Three Bears during the move, and therefore had to extend his 20p per share offer to all other shareholders - which he has continually refused to do.

In April, the Takeover Panel announced it was now taking Mr King to court to compel him to follow the City rules and to extend the share offer.

During Tuesday's media conference about the renegotiated retail deal, Mr King stated the case would have "zero impact" on Rangers' financial performance.

He also claimed that "interest free loans" from himself and existing shareholders had paid for the overhaul of Pedro Caixinha's squad this summer.

The original retail deal with Sport Direct, set up by former Rangers International chief executive Charles Green in 2012 saw around 7p in every £1 spent on official merchandise going to the club.

Mr King said the new agreement would see "by far the majority of net profits" from club shop and website purchases going to Rangers, as well as an equal share of profits from Sports Direct sales of products.