JJB in 100m cash call
SPORTS retailer JJB, the group which dodged administration in April, is today set to announce a share placing worth £100m – more than its market value.
The cash call, which is discounted to 25p per share – a massive drop from last night’s closing price of 34.5p – is supported by Harris Associates and Crystal Amber, the company’s two major investors.
Demand for a slice of JJB is said to be high, with many new institutional investors planning to take up the share offer, which is why the sportswear retailer expects to raise more than its current market value of £86.5m.
Panmure Gordon and Numis Securities will be underwriting the deal.
JJB, run by Sir David Jones, would not comment on the placing last night but said it was continuing to look at options for fund raising.