The JD Sports Fashion PLC (LON: JD) share price edged 1.76% higher after announcing that it had acquired the remaining 49.98% stake in Iberian Sports Retail Group (ISRG) to become the Group’s sole owner once the transaction closes.
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The company noted that JD Sports operates over 460 European stores, including Sports Zone in Portugal, JD in Iberia, Sprinter in Spain, Aktiesport, and Perry Sport in the Netherlands. ISRG also owns ISRG 98% of the Deporvillage online business and 50.1% of the Bodytone fitness equipment business.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
JD Sports agreed to pay the minority shareholders Sonae Holdings, S.A. and Balaiko Firaja Invest, S.L., which respectively owned 29.99% and 19.99% of ISRG, €500.1 million, which will be funded from the Group's existing cash resources.
The move did not result in a significant change in JD Sports' share price largely because it was expected since the company had already stated the potential acquisition on 9 May 2023.
JD Sports noted that the company’s management board had approved of the transaction and would recommend that shareholders vote in favour of the deal at a general meeting to be held later.
Some of the company’s shareholders, led by all the directors, have confirmed their intention to provide an irrevocable undertaking to vote in favour of the Resolution regarding their respective holdings of 1,517,291 Ordinary Shares.
The Portland Group also supported the resolution and promised to vote in its favour at the general meeting. The company owns approximately 51.6% of JD Sports issued share capital.
Régis Schultz, JD Sports’ CEO, said: “At our Capital Markets Event earlier in the year, we emphasised the benefit of having strong complementary concepts to support our ‘JD first' global growth strategy. ISRG is a highly successful business and one of the leading players in sports retail in Iberia. By bringing the two businesses closer together, there is significant potential for accelerating growth. We sincerely thank the minority shareholders, Balaiko and Sonae, for their important contributions to the business during our time as partners.”
*This is not investment advice.
JD Sports share price.
The JD Sports share price edged 1.76% higher to trade at 139.88p, from Thursday’s closing price of 137.45p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.