JJB boss drops buyout plan
Board could not recommend Whelan offer
June 25 2003
JJB Sports founder and chairman David Whelan has dropped plans to take the company private after the retailer independent directors decided his planned 220p a share offer was not good value for shareholders.
Whelan confirmed in March that he was talking to backers about a plan to buy out the 61 per cent of the sportswear retailer not already owned by his family. The move had been rumoured for some time as JJB struggled in a tough UK market for sports fashions.
Whelans said: “Whilst I am confident that finance was available to pursue an offer of 220p per share, the independent directors, who have been advised by UBS Investment Bank, have concluded that the indicative price would not be recommendable to shareholders.”
Trading at JJB continues challenging with like-for-like turnover and gross margins are slightly lower than a year ago, when the World Cup boosted sales. JJB remains “confident for the full year and is comfortable with current market expectations.”
Whelan said: “I continue to believe in the prospects of JJB Sports and I look forward to participating in JJB’s future success both as chairman and through my significant shareholding which I remain committed to holding.”
