JD Sports’ £90m Footasylum takeover moves step closer

1270
JD Sports Footasylum
// JD Sports’ £90m acquisition of Footasylum moves one step closer since shareholder approved it April 12
// JD Sports had already owned a stake in Footasylum since February.
// JD Sports will apply Section 979 of the Companies Act 2006 to acquire compulsorily any remaining Footasylum shares

JD Sports’ takeover of smaller rival Footasylum has just moved a step forward since being given the greenlight by shareholders in mid-April.

The sportswear retailer already owned a stake in Footasylum, having bought a percentage of its issued share capital in February.

A £90 million deal for the remaining shares was made and the acquisition subsequently became unconditional on April 12.

JD Sports received acceptance for its 82.5p per share offer from 78.2 million Footasylum shareholders, representing around 75 per cent of issued share capital.

The retailer has now sent a formal compulsory acquisition notices to Footasylum’s shareholders who have not yet accepted its offer.

JD Sports aims to apply the provisions of Section 979 of the Companies Act 2006 to acquire compulsorily any remaining Footasylum shares.

The shares transfer in accordance with the compulsory acquisition notices is due to happen on June 5.

Meanwhile, JD Sports’ acquisition effectively ends Footasylum’s short tenure as a publicly listed company, which floated on the Alternative Investment Market – the same market as Asos and Boohoo – since November 2017.

JD Sports announced last year that it had no intention of making a formal offer to Footasylum despite buying an 8.3 per stake in it – later raising it to over 18 per cent.

Click here to sign up to Retail Gazette‘s free daily email newsletter