£90m JD Sports takeover bid given green light by shareholders

JD Sports

Bury based JD Sports has been given shareholder backing to press ahead with its £90m takeover bid for rival firm Footasylum.

JD Sports has subsequently declared its offer as “wholly unconditional”.

The sportswear retailer received acceptance for its 82.5p per share offer from 78.2 million Footasylum shareholders, representing around 75 per cent of issued share capital.

It is expected that JD Sports will keep the Footasylum brand due to its younger customer base.

JD Sports chief executive 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.”

Footasylum, which is based in Rochdale, floated on the AIM in November 2017.

JD Sports said it expects the enlarged business will be able to take advantage of business opportunities which are not readily available to either JD or Footasylum on a standalone basis.

Footasylum Directors, who have been advised by GCA Altium on the financial terms of the offer, consider the terms of the offer to be fair and reasonable.

JD Sport is the largest firm of its kind in the UK and is a specialist multi-channel retailer of fashionable branded sports and casual wear.

It has over 2,400 stores across a number of retail brands in 18 countries and aims always to provide its customers with the latest products from leading brands.

Footasylum was founded in 2005 and focuses on the footwear and sports clothing market.

It retails “on-trend” product ranges which are predominantly aimed at 16 to 24-year-old fashion-conscious customers and are sourced from an extensive stable of third party and own brands.

Law firm Addleshaw Goddard is advising JD Sports Fashion on its takeover offer.

The team is an all Manchester one and is being led partner Roger Hart and includes Rabia Burton, David Auty and Millie Johnson.

Footasylum was founded in Cheshire in 2005 by David Makin, who previously set up the more successful JD Sports chain with his business partner John Wardle in 1981.

Earlier this month JD Sports acquired the Pretty Green brand, online and wholesale business as well as a flagship store in Manchester, saving 67 jobs.

The firm, set up by Liam Gallagher, had gone into administration.

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