REG - JD Sports Fashion - Related Party Announcement

JD Sports FashionAnnouncement

03/06/2021 07:40

RNS Number : 6450A
  
JD Sports Fashion Plc
  
03 June 2021
  
 

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
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
MSCSSAFWEEFSEEM