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JD Sports on the prowl for acquisitions after raising £464m
4th Feb 2021 07:32
(Sharecast News) - JD Sports Fashion is on the hunt for new acquisitions after raising £464.2m on Thursday in a share placing to finance expansion and acquisitions.
The UK-based sportswear and clothing retailer on Thursday said 58.4m new shares were placed at 795 pence each, about 6% of its share capital.
It has been pursuing an aggressive expansion strategy in the US, and this week bought east coast sportswear retailer DTLR Villa for $495m. That followed the $325m purchase of Shoe Palace last month.
The placing price represented a discount of around 2.5% to the mid-market closing price of 815p on February 3.
JD Sports said that in addition to the placing proceeds, it had £700m of debt facilities. It also had £1bn in cash before the DTLR deal.
"The directors of the group believe there are a number of potentially attractive acquisition opportunities that will become available in due course and which will continue to support the group's successful global expansion strategy," JD said on Thursday.
The UK-based sportswear and clothing retailer on Thursday said 58.4m new shares were placed at 795 pence each, about 6% of its share capital.
It has been pursuing an aggressive expansion strategy in the US, and this week bought east coast sportswear retailer DTLR Villa for $495m. That followed the $325m purchase of Shoe Palace last month.
The placing price represented a discount of around 2.5% to the mid-market closing price of 815p on February 3.
JD Sports said that in addition to the placing proceeds, it had £700m of debt facilities. It also had £1bn in cash before the DTLR deal.
"The directors of the group believe there are a number of potentially attractive acquisition opportunities that will become available in due course and which will continue to support the group's successful global expansion strategy," JD said on Thursday.