20 Oct 2008 07:00
JJB Sports plc
5% cash placing to Sports Direct International plc
20 October 2008
JJB Sports plc ('JJB', 'the Group' or 'the Company') today announces a cash placing of 11,944,360 new JJB ordinary shares ("Placing Shares") to be issued at a price of 28.5p per share (the "Placing"). The Placing Shares, which equate to approximately 5% of the current issued share capital of the Company of 238,887,500 ordinary shares (the "JJB Ordinary Shares") have been placed with Sports Direct International plc ('Sports Direct').
The proceeds from the Placing, totalling approximately £3.4m, will be used for general working capital purposes and to strengthen JJB's financial position.
The Placing Shares have been issued credited as fully paid conditional upon
Admission and will rank pari passu in all respects with the JJB Ordinary Shares, including the right to receive all dividends and other distributions declared after the date of their issue.
Application will be made for the Placing Shares to be admitted to the Official List of the Financial Services Authority ("FSA"), and to be admitted to trading by the London Stock Exchange plc on its main market for listed securities (together, "Admission"). Admission is expected to take place, and dealing in the Placing Shares to commence, at 8.00a.m. on 23 October 2008.
Commenting on the Placing, Chris Ronnie, Chief Executive of JJB Sports plc, said: "Sports Direct approached us with an offer to participate in a placing of new shares. After due consideration the Board and I deemed the offer to be attractive for both parties. It will put JJB on a more secure financial footing and provides further flexibility for the Board to take positive steps that provide stability for the Group in this tough retail environment. Sports Direct have a track record of acquiring stakes in other listed companies, including JD Sports Fashion Plc and Blacks Leisure Group PLC. We welcome them as a shareholder in JJB."
For further information, please contact:
JJB Sports plc 01942 221 400
Chris Ronnie
David Madeley
Maitland 020 7379 5151
Tom Roberts
Richard Farnsworth
This announcement is for information only and shall not constitute an offer to buy, sell, issue, or subscribe for, or the solicitation of an offer to buy, sell or issue, or subscribe for any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This announcement has been issued by and is the sole responsibility of JJB.
A copy of this press release can also be viewed on the JJB Sports plc corporate website, www.jjbcorporate.co.uk