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JD Sports raises £464mln via placing to boost acquisition power


JD Sports Fashion PLC (LON:JD.) said it has raised £464mln through a share placing to continue its acquisition plans outside of Europe.

The athleisure retailer placed 58mln new shares, representing 6% of the entire issued share capital, at 795p a pop, which was a 2.5% discount to its mid-market closing price on Wednesday.

READ: JD Sports finds stronger footing in US sneakers market with latest acquisition

The placing price was decided after the accelerated bookbuild process launched last night was completed.

The FTSE 100 group began its expansion outside of Europe with the establishment of a joint venture in Malaysia in December 2015.

Since then, it has continued to expand its global presence, most recently in the US, where it owns DTLR Villa, Shoe Palace and Finish Line.

The firm said its global expansion strategy has been a major factor in growing its profit before tax, which has increased over four-fold in five years.

The proceeds will add to JD’s net cash of £1bn as of December 2020 and debt facilities, including a £700mln revolving credit facility, to capitalise on relevant opportunities.

“This will probably be looked back on as a time of unprecedented consolidation in the sports fashion market and deals can be done quickly,” analysts at house broker Peel Hunt commented. 

“JD’s knowledge of the global industry and ground work in terms of relationship building and due diligence means that as opportunities come up, it is always in the running.”

 — Adds placing result —

— Adds analyst comment —

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