JD Sports succeeds with Footasylum offer, most shareholders agree to sell
JD Sports has received enough shareholder support for its takeover offer for smaller peer Footasylum and has declared the offer “wholly unconditional” as a result.
That means Footasylum’s existence as an independent company will soon end, although it looks like the brand is set to live on with JD maintaining the chain as it targets a slightly different customer to the main JD Sports banner.
More than 90% of shareholders have accepted its 82.5p per share/£90.1 million offer made a little over a month ago, including Pentland, which held a 2.6% stake.
JD’s executive chairman Peter Cowgill said: “We are very pleased that this offer has been declared unconditional and look forward to welcoming the Footasylum team to our newly enlarged group. We believe the combination of these two complementary businesses will deliver significant operational and strategic benefits going forward.”
JD now intends to exercise its rights to compulsorily acquire the Footasylum Shares for which it hasn’t received acceptances.
It brings to an end a relatively short period for Footasylum as a listed company. It floated on the Alternative Investment Market (the same market where Asos and Boohoo shares are listed) as recently as November 2017.
And while it seemed to be a strong buy at first, recent tough trading has resulted in profit warnings and a share price plunge. Interest from JD this year helped the share price rise sharply in February, even though the company insisted that its initial 8.3% stake acquisition wouldn’t lead to a full takeover bid.
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