JD Sports has confirmed it is considering tapping shareholders for extra cash to fund acquisitions, following reports that it is mulling a £400m equity raise.
The retailer announced this morning that it is “exploring additional funding options” which could involve an equity placing.
It said it is seeking to increase its “flexibility to invest in further strategic opportunities”.
This morning’s announcement follows reports that JD Sports is considering launching an equity placing to raise £400m as soon as this week.
Sky News reported that the capital raising would be used to fund future takeovers, after cash was depleted by JD Sports’ £491m takeover of US retailer Shoe Palace.
The company said a further announcement would be made “as and when appropriate”.
JD Sports had been in discussions with US firm Authentic Brands to take over Topshop. However, earlier this week Asos announced it was in exclusive talks with Topshop’s administrators about a rescue deal.
The firm was also reportedly interested in buying Debenhams – which was yesterday sold to Boohoo for £55m.