JJBSports in rights issue
JJB Sports yesterday revealed it was storming ahead with its £100m rights issue after shareholders were satisfied that rumours surrounding the financial dealings of its chairman Sir David Jones were unfounded.
The ailing sportswear chain, which teetered on the brink of collapse earlier this year, said that it would issue 400m new shares at the heavily discounted price of 25p through a firm placing and open offer. Panmure Gordon and Numis are acting as joint broker, bookrunner and underwriter. Lazard is acting as financial adviser.
The rights issue allows JJB to renegotiate its lending terms with Bank of Scotland, including an extension of its £25m loan to September 2012.
Shareholders Crystal Amber, Harris Associates, Schroders and Tosca Fund are all said to have subscribed.
Jones yesterday said: “This capital raising represents a new beginning for JJB Sports.”