Shares of troubled Rochdale-based fashion retailer Footasylum soared about 80% on Monday after its close neighbour, Bury-based JD Sports Fashion, bought an 8.3% stake in Footasylum and said it may buy up to 29.9% of the firm’s shares.

JD Sports said it acquired the stake for “investment purposes.”

“JD Sports is prepared to acquire up to an aggregate interest of 29.9% in Footasylum and confirms that it is not intending to make an offer for Footasylum,” added JD Sports.

“This is a statement to which Rule 2.8 of the City Code on Takeovers and Mergers (the “Code”) applies. Under Note 2 on Rule 2.8 of the Code, JD Sports reserves the right to set the restrictions in Rule 2.8 aside in the following circumstances:

“a. with the agreement of the board of Footasylum; b. if a third party announces a firm intention to make an offer for Footasylum;

“c. if Footasylum announces a “whitewash” proposal (see Note 1 of the Notes on Dispensations from Rule 9) or a reverse takeover (as defined in the Code); and

“d. if there has been a material change of circumstances (as determined by the Takeover Panel).”