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According to the city code of takeovers and mergers 30%: 30% triggers take over hence why JD claim to not be launching a takeover move.
“If you have 30% you have control or voting rights”
Would that not be 50.1%?
“If JD can buy the stock which they can they can take control”
Only if the board/family decide to sell, they (the family) currently hold 60%+ of the shares in issue.
And adding why has Barry Bown previously JD Sports joined Foot 9 months ago ? Talking about a strategic move...
They would have negotiated block buys before hand considering what they are paying for their stock speaks volumes. And why pay that much ? I wonder if any brand licensing rights come as part of this acquisition...........
If you have 30% you have control or voting rights If someone owns 90% of a company they can forcefully acquire the outstanding 10%, 89.9% they cannot. This scenario is irrelevant here as most of the shares are in the public domain or in issue. If JD can buy the stock which they can they can take control Only if foot, didn’t want JD to take control could they act in a defensive manor, I.E poison pill where foot issue more shares onto the market thus liquidating JDs percentage holding OR a white knight strategy I don’t think any of the above are an option as foot will not look at this as a hostile move if anything it will be welcomed IMO - DYOR
They’ve probably already placed the orders and they are being filled as we speak They may well be “darlpooling” their final buys a method open to iis and now pis, which is a off book process which benifits both the mms and JD. Then after they have acquired the stock up to 29.9% make a takeover raid for the final few % to push them as major holders. I.E Takeover manoeuvre. May well not be the case but for them to invest in a smaller competitor for no reason makes me scratch my head
I think we *are* seeing the trades. I don't think IIs owned 21% on Monday 08:00.
JD agreed to buy at 50p, 70p and 75p. After that, it's up to MMs to honour the purchase....by whatever means necessary. For example... shaking out PIs. Frustrating us between 45 and 55p.
EVERY SINGLE PERSON who bought between September and Monday suddenly saw a massive jump in SP. That's a lot of potential, despite low volumes over most of that period
:) As always open to being wrong.
If they had been from the free float imo we would have seen the trades, the real re-rate starts when the free float starts getting smaller.
Ah! Got ya. I think a chunk will have come from free-float. One of the reasons for the re-rate, IMO. It brought out plenty of sellers and MMs make a killing with the spread in relation to the JD purchase price. The longer they can keep the SP down, the more they make.
There is a decent chance of a TR-1 or two... but by the time things settle, there won't be neat TR-1s that balance II sells and JD's & Pentland's purchases.
....IMO :) I might be a bit off-bullseye, but i'm pretty sure that i'm on-target.
I mean for the sales not JD’s purchase.
probably only said it's an investment cuz they didn't want everyone rushing out and buying the shares.
@dan1nat1
"We only have TR1’s covering a maximum of 11.43%"
This is wrong. Typo? :)
huge headline. JD buys into footasylum.
It’s obvious to most, it’s well and truly underway imo DYOR !!!
The key to JD Sports’ success has been its ability to pull in premium brands, specifically Adidas and Nike, whose higher-margin, often exclusive stock is a draw to fashion-conscious sportswear fans happy to pay up to £230 for top-end football boots. Expanding its empire across the globe has not only diluted JD Sports’ reliance on the UK — still its largest and core market — but has also created a virtuous circle for the retailer, which becomes ever more attractive for Nike and Adidas the greater number of countries it is in. With UK retailers feeling the force of depressed consumer confidence, Brexit uncertainty and the shift of shoppers online, the two most recent financial updates from JD Sports have been strikingly strong.
Don’t forget If a person or business gains control of more than 30% of the voting rights in a business then they must make a cash offer to all other shareholders that is at least equal to the highest paid price in the previous 12 months. I’ll let you do the maths on that one ............... 😎
While the recent decision to acquire up to 29.9 per cent of Foot Asylum, a tiny competitor set up by its co-founders, is a sideshow, it is a highly unusual thing for any company to buy a stake in a rival as an investment. from the Times
Sports was set up as a single shop in Bury, Greater Manchester, in 1981 by David Makin and John Wardle. It has more than 2,400 stores, including international operations in the United States — which it broke into last March with the £396 million acquisition of Finish Line — as well as continental Europe and countries such as Malaysia and Australia. The two co-founders sold out to the Rubin family in 2005 and the billionaire entrepreneurs control just over 57 per cent of the retailer through their Pentland Group vehicle. In its most recent financial year JD Sports generated profit before tax and other items of £307.4 million on revenues of almost £3.2 billion; shareholders will find out how well it did last year in April.
he increasingly Darwinian world of high-street retailing, the fittest players may well be jogging along in a pair of trainers they bought at JD Sports. While all around it rival shops have been warning on profits and slashing prices just to stay alive, this sportswear fashion business has reported impressive underlying sales growth and promised that its annual results will be at the top end of City expectations. Yet while the performance of JD Sports, and its share price, is bordering on phenomenal, there is an uncomfortable amount of detail about its underlying numbers that investors have to take on trust.
We are due some TR1’s there have been 4 big buys this week totalling 21.34% of the shares in issue. We only have TR1’s covering a maximum of 11.43%.
8,390,884 @ 75p
2,512,202 @ 70p
8,676,878 @ 50p
2,720,000 @ ? *Not seen as a trade but has to have happened to get JD to there current 21.34%.
Exactly and to whom and for what reason ..... mmmmmmmmm let me think on it !! ;-)
Remember the massive buys @ premium price last week: 2,512,202 shares @ 70.00p = £1.759m 8,390,884 shares @ 75.00p = £6.293m
Very important to read the posts from Friday afternoon, new investors need to know many could not buy over £500. “Can’t buy more than £500...£1000, what happens when many PIs try to buying on mass £500? Clearly the share price will rise to warn them off, but if they are clever to keep buying sub 75p then JDSports will be forced to buy at a higher price. I hold a decent holding here for sure, it may well drop or rise, what annoys me the most though is when the big guys bully the small guy in to selling and they sell at a loss, hold strong I say, I will. I know I will be in profit buying at sub 50p when JD have an average of 64p, what I’m saying to the other PIs is don’t sell at below 50p, make them pay more for your shares, be patient, it will come good. In my opinion a take over is coming.”
For those that missed it as the post is being pushed down mighty fast to hide it. Nithave06, you hold but are telling people this is going to 30p? Why on earth are you still holding if you think this is going to 30p?? That alone should be reason enough for people to think that what you are saying is stupid at best. I am telling you NOW, I could not buy over £500 worth in the last twenty minutes of Friday but could sell 40k worth, they want your shares and will do everything in their power to get them. I won’t sell early so I will win, those that sell early are simply playing in to the hands of the rich. It’s time to hold... Seriously think... if JD wil pay 75p then why oh why would you sell sub 50p. I offer this as my defence: Try buying next week as a pretend buy (nothing lost), if you can in the “thousands” next week sub 45p then leave it if you wish, if you can’t then I rest my case. If it is possible sub 45p then I have big enough pockets to buy more if the mms want to let it go cheap.
Foot Locker has announced a US$275 million capital expenditure program for this year, with Asia singled out as a target market. The investment is $75 million more than the US-headquartered sports-shoe and apparel retailer allowed for last year. “The capital spending planned for this year reflects increased investments in the company’s store fleet in all existing regions, including Asia, and in its digital initiatives,” the company said in a statement. “In addition, the company will continue to spend capital to build out its supply chain and other infrastructure capabilities.” Chairman and CEO Richard Johnson said Foot Locker sees “exciting opportunities” to invest in the business this year. The capital commitment followed decisions to launch a share buy-back program and to pay a dividend to shareholders. footlocker would really lose UK traction if footasylum got taken out by anyone else.