Invesco seeks control of JJB via debt deal
Invesco, the biggest shareholder in JJB Sports, wants to buy the ailing retailer’s outstanding debt in an attempt to take control of the company, the Sunday Times reports.
10:10AM BST 05 Aug 2012
The US fund manager is said to have become frustrated by JJB’s weak performance compared with rival Sports Direct and believes owning the debt held by Lloyds Banking Group will give it the leverage to push for restructuring, the newspaper said.
JJB is currently controlled by a five shareholders who own 76pc of the company’s shares: Invesco holds 34pc, activist investors Harris Associates and Crystal Amber have 28.8pc and 5.15pc respectively, while the Bill and Melinda Gates Foundation owns 4.98pc and Dick’s Sporting Goods, the US sports retailer, has 3.08pc.
Dick’s Sporting Goods took its stake – an a position on the board – when it injected £30m of cash into the business in April.
Shares in JJB have fallen nearly 70pc over the past year to around 5p and the company has issued a string of profit warnings, most recently last month, when it admitted it needed an further cash injection.
This led to the resignation of Keith Jones, chief executive since 2010. He was replaced on an interim basis by Beverley Williams, the former boss of the La Senza lingerie chain.