JD Sports mulls equity capital raise

JD Sports has confirmed it is considering an equity capital raise to help drive its expansion.

“The board confirms that it is exploring additional funding options with a view to increasing its flexibility to invest in future strategic opportunities and that this may involve a non pre-emptive equity placing,” the company announced on Tuesday.

It came a day after Sky News reported the sportswear giant was in talks about a 400 million pound share sale that could be launched as early as this week.

JD Sports is also understood to have been in talks with Authentic Brands, the US owner of Forever 21 and iconic department store chain Barneys, over a joint bid for Topshop.

Asos earlier this week confirmed it was in exclusive talks about buying Topshop from the administrators of the collapsed Arcadia Group, but JD Sports and Authentic Brands are expected to make a fresh approach if those talks fall through, according to Sky.

It isn’t the first acquisition JD Sports has been linked with recently. Earlier this month, the Manchester-based business acquired independent menswear retailer Wellgosh for an undisclosed sum.

A month earlier, the company snapped up US footwear retailer Shoe Palace for 325 million dollars.

Images courtesy of JD Sports/Silverburn