JJB Sports has backed sports brand Nike’s proposed acquisition of England football shirt manufacturer Umbro.
The retailer has entered into an irrevocable undertaking with Nike to vote in favour of the deal. This will lapse in the event that a competing offer for Umbro is announced at a price of not less than 210p a share.
JJB non-executive chairman Roger Lane-Smith said: “We believe that accepting Nike’s cash offer for Umbro is in the best interests of our shareholders and, accordingly, we are providing an irrevocable commitment to accept Nike’s offer for Umbro.”
Nike’s£285 million acquisition of Umbro has been subject to shareholder approval since late last year. JJB has a 10 per cent holding and Sports Direct had nearly 30 per cent. Sports Direct founder Mike Ashley agreed in December to sell part of his stake in Umbro to Nike for£56 million.
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