Bury-based retail giant JD Sports Fashion Plc confirmed on Tuesday it is “exploring” an equity capital raise.

The announcement comes after media reports that it was in talks about a £400 million share sale.

“The board confirms that it is exploring additional funding options with a view to increasing its flexibility to invest in future strategic opportunities and that this may involve a non pre-emptive equity placing,” said JD Sports.

“A further announcement will be made as and when appropriate.”

Retail analyst Greg Lawless at Shore Capital, said: “We are not that surprised that the JD board are now considering an equity raise given its global ambitions and the potential merger and acquisition opportunities that might arise from the fallout of Covid in the retail sector, both in the UK and internationally …