JD Sports Fashion Plc (JD.L) announced on Friday that it intends to buy the remaining 49.98 percent shares in Iberian Sports Retail Group, S.L. or ISRG that is currently held by Balaiko Firaja Invest, S.L. and Sonae Holdings, S.A.
The total cash consideration is 500.1 million euros which will be funded by JD Sports existing cash resources.
JD Sports expects the shareholders to vote in favor of the resolution at the general meeting to be held in September. It said, “the Company has, in aggregate, received confirmations of an intention to provide irrevocable undertakings to vote in favour of the Resolution in respect of 2,677,908,486 Ordinary Shares, representing approximately 51.6% of the Company’s issued share capital.”
ISRG currently operates more than 460 stores in Europe and reported consolidated revenues of 1.239 billion euros and profit before tax of 96.6 million euros for the year ending January 2023.
“The ISRG team in Iberia also have an important part to play in the further development of the JD fascia in Iberia and beyond.”, JD Sports said in a statement.
On Thursday, shares of JD Sports closed at 138 pence down 4.99% or 7.25 pence on the London Stock Exchange.
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