// JD Sports has received enough shareholder support for its takeover offer of Footasylum
// JD Sports said the offer has been declared wholly unconditional
// The news comes a week after JD Sports acquired Pretty Green out of administration
JD Sports has gained enough shareholder support for its £90 million takeover offer for smaller rival Footasylum.
JD Sports subsequently declared its offer as “wholly unconditional”, a term that essentially means the shareholders of a target company have agreed to sell to the bidder.
The sportswear retailer 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 deal, first announced last month, has an equity value of £90.1 million.
When combined with all other Footasylum shares directly and indirectly held by JD Sports, the company has received acceptances representing 92 per cent of Footasylum’s shares.
Because of this, sportswear giant will exercise its right to a compulsory acquisition of the remaining eight per cent of Footasylum’s shares.
It’s expected that JD Sports will keep the Footasylum brand active given it targets slightly different customers.
“We are very pleased that this offer has been declared unconditional and look forward to welcoming the Footasylum team to our newly enlarged group,” JD Sports executie chair Peter Cowgill said.
“We believe the combination of these two complementary businesses will deliver significant operational and strategic benefits going forward.”
JD Sports’ acquisition effectively ends Footasylum’s short tenure as a publicly listed company.
It floated on the Alternative Investment Market – the same market as Asos and Boohoo – as recently as November 2017.
JD Sports last year said it had no intention of making an offer to Footasylum despite buying an 8.3 per stake – later raised to over 18 per cent – in the footwear retailer.
Meanwhile, just last week JD Sports bought Liam Gallagher’s menswear chain Pretty Green out of administration for an undisclosed deal.
The deal saw Pretty Green’s business, brand, online and wholesale business as well as its flagship store in Manchester saved, but the remaining 11 stores and its 33 House of Fraser concessions ceased trading immediately – affecting 97 employees.