ONE of sportswear retailer JJB’s advisers was yesterday forced to defend its role in a £65m financing deal after an attack from a major investor.
The investor, who did not want to be named, suggested that Numis Securities had not earned a fee because it had “brought nothing to the party”.
JJB launched a £65m fundraisng deal which includes a placing and open offer of 162.5m new shares at 40p each.
Numis hit back at the suggestion that it had not earned its portion of a £5m fee paid to advisers. Other advisers include Lazard, law firms and PR firm Maitland.
A Numis spokesman said: “We have worked very hard and spent a lot of time on this. We are underwriters and have reviewed the working capital among other things.”
He said that Numis was steering JJB’s move from the main market to AIM, which was an intensive and specialised process.
Last month JJB, led by Keith Jones (pictured), secured a company voluntary arrangement (CVA) in which landlords agreed to forfeit up to £60m in rent.
The proposed share placing at 40p a share can only be triggered with the backing of a shareholder meeting later this month.
The placing is being backed by the company’s four main shareholders.