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JJB Sports May Change Hands Soon

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LONDON, UK (October 12) – The stock market valuation on the London Stock Exchange of Britain’s largest sporting goods retailer jumped by nearly 25 percent last week following speculation that an investor was preparing to make a bid for the company. JJB Sports acknowledged that it has been approached, but pointed that it had not […]

LONDON, UK (October 12) – The stock market valuation on the London Stock Exchange of Britain’s largest sporting goods retailer jumped by nearly 25 percent last week following speculation that an investor was preparing to make a bid for the company. JJB Sports acknowledged that it has been approached, but pointed that it had not yet made a formal takeover offer and declined to confirm that CinVen, the large British investment fund, was the candidate to the move.

In spite of press rumours to this effect, it’s not clear yet
whether David Whelan, JJB’s chairman and CEO, may
participate in the bid. Last year, Whelan, whose family owns
more than 30 % of JJB’s shares, had dropped a planned
bid for the remaining equity at 220 pence a share after the
company’s non-executive directors found the price too low.
Judging from the recent movements in the share price,
analysts are expecting the new bid to come at around 260
pence a share, which would value the group at about £600
million (€867m-$1,070m), or about 9 times its pre-tax profit for the year ended last Jan. 25.

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