The option to buy or sell was the second offering. Sonae and the Spanish Segarra family are leaving the capital of the Iberian Sports Retail Group (ISRG), which will be entirely controlled by the British group JD Sports Fashion.
The information was released on Friday by Sonae (owner of PÚBLICO), in a statement sent to the Commission for the Securities Market (CMVM), stating that the 30% stake minus one stake in ISRG “will generate a cash flow of financial capital. €300m And a capital profit estimated at 175 million euros.”
The end of the partnership, which was established in 2018, in the company that owns several brands specializing in the trade of clothing, shoes and other sports products, should come to an end by the end of the year.
Already in May it was announced that the minority shareholders could be sold (50% of the capital minus two shares) or the same shareholders could buy 50% plus two shares of JD Group. .
“JD Group intends to acquire the part of the corresponding share capital of 50% minus two shares, currently held by the minority shareholders of ISRG, to become the sole shareholder of the company,” Sonae advanced in the statement, adding that “as of the option was considered an increase in ISRG equity worth €1 billion, and the sale of one stake 30% less than the one that Sonae owns in the company would result in a cash flow of €300 million and a capital gain of approximately €175 million.
The Claudia Azevedo-led company offers that “the multiple implied in the transaction is nine times EBITDA for the year ending January 2023,” explaining that the sale “will not have an impact on Sonae’s consolidated sales volume or underlying EBITDA, as ISRG consolidates.” using the equity method in group accounts.
Also according to the information released to the market, “In the twelve months ending March 31, 2023, ISRG’s contribution to Sonae’s consolidated EBITDA (equity method) amounted to €20 million.”
According to UK rules, the transaction is “only subject to the approval of an ordinary resolution by the general meeting of JD Group shareholders, which is scheduled to take place in September 2023.”
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