JD Sports mulls share sale amid £400m reports

JD Sports executive chairman Peter Cowgill

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 …

“To bolster its balance sheet with a potential fundraising will enable the company to widen its already extensive corporate development net, as it looks for further bolt-on opportunities.”

 

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Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.