Britain's largest sportswear JD Sports boosts war chest by issuing $631 million share | FI SENSE

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The biggest sportswear retailer in Britain, JD Sports Fashion is further targeting acquisitions after raising 464 million pounds ($631 million) through a placing of new shares. This fast-growing group has seen massive growth in the international markets as it opened a Malaysian joint venture in 2015. It further purchased Finish Line in the US in 2018 bought West Coast-focused Shoe Palace in December 2020. In 2021, JD further announced to buy DTLR Villa for $495 million, entering the US market.

As reported by Reuters, JD explains that “The directors of the group believe there are a number of potentially attractive acquisition opportunities that will become available in due course and which will continue to support the group’s successful global expansion strategy”.

The company said that 58.4 million new shares were issued at 795 pence per share, representing approximately 6% of its share capital. The company further expect entries into various new countries as well as other deals to bolster existing positions. In addition, JD Fashion said that it has 700 million pounds of debt facilities and also 1 billion pounds of cash prior to the DTLR deal.

Although JD stores have remained closed during COVID-19 lockdowns, the firm continued to thrive with its strong online operation and the last month raised its full-year profit view.

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