Last checked at 3 Jun 2021 07:00
3 June 2021
JD Sports Fashion Plc
Proposed intergroup sale of Sports Unlimited Retail BV to Iberian Sports Retail Group SL
JD Sports Fashion Plc ('JD' or the 'Group'), a leading retailer of sports, fashion and outdoor brands, announces that, on 2 June 2021, it agreed non-binding headline terms for the disposal of Sports Unlimited Retail BV ('SUR' or the 'Company'), which is a wholly owned company based in the Netherlands operating under the Aktiesport and Perry Sport fascias, to Iberian Sports Retail Group SL ('ISRG'), its 50.02% subsidiary based in Spain.
The rationale for the transaction is that ISRG is more focused on the sporting goods sector than the core JD brand and therefore JD feel that the management team of ISRG will be better placed to drive growth and higher returns in SUR longer term. However, as the parent to ISRG, JD will continue to make strategic decisions regarding the Company's future.
Consideration of €16.5m is expected to be payable on completion which ISRG will fund from existing cash balances and resources.
By virtue of the fact that Sonae - SGPS, SA and Balaiko Firaja Invest, SL are substantial shareholders in ISRG, the Group anticipates that the sale of SUR to ISRG, once entered into, will constitute a smaller related party transaction under Listing Rule 11.1.10.
JD will make a further statement upon formal completion of the transaction which is expected to take place on 30 June 2021.
Peter Cowgill, Executive Chairman, said "We have an excellent management team at ISRG and, having successfully integrated the Sport Zone business into its operations, this is the right time for ISRG to further expand its geographical reach. By consolidating our sporting goods businesses under the ISRG umbrella, we are absolutely confident that the transfer of SUR to ISRG will bring long term development opportunities to both the team at SUR and their international brand partners."
Enquiries:
JD Sports Fashion Plc Tel: 0161 767 1000
Peter Cowgill, Executive Chairman
Neil Greenhalgh, Chief Financial Officer
Jennifer Iveson, Investor Relations
MHP Communications Tel: 0203 128 8193
Andrew Jaques
Giles Robinson
Charles Hirst
Catherine Chapman