UPDATE 1-Sports Direct board discussed combining House of Fraser, Debenhams

LONDON, Sept 12 (Reuters) - The board of Sports Direct has discussed the possibility of combining its newly acquired House of Fraser department store business with struggling rival Debenhams, outgoing Sports Direct director Simon Bentley said on Wednesday.

Sports Direct, controlled by founder and billionaire Mike Ashley, bought House of Fraser out of administration for 90 million pounds ($117 million) last month. It also owns a 29.7 percent stake in Debenhams.

Asked if Sports Direct's board had talked about the possibility of joining House of Fraser and Debenhams together, Bentley told reporters: "It's been discussed."

Shares in Debenhams rose as much as 9 percent on Wednesday. They were up 5.2 percent at 1154 GMT.

Sports Direct had no immediate comment.

Bentley added that the company was currently busy with its latest acquisition.

"If any of you had the job of handling House of Fraser right now, I think you might have your hands full, and incidentally we've also got Sports Direct," he said.

"If there are opportunities in the future then we'll be in a position to take advantage of them."

He was speaking after Sports Direct's annual shareholders' meeting in central London.

Ahead of the meeting, Sports Direct said Bentley, the firm's senior non-executive director was retiring as a director of the company, having served on the board since 2007, and would not seek re-election.

Sports Direct also said its under-fire chairman Keith Hellawell was stepping down.