JJB Sports founder sells up
11 June 2007 09:53
JJB Sports founder and executive director David Whelan has announced that he, his immediate family and related family trusts have disposed of their entire holding of 68,992,948 shares to Icelandic financial group Exista and Chris Ronnie, formerly of rival company Sports Direct. The sale, which represents 29% of the company, is valued at approximately £190 million or 275p per share. Mr Whelan has also stood down from the board of the company and has been appointed to a non-active role as honorary life president. Meanwhile, Chris Ronnie has been appointed as deputy chief executive of JJB, with responsibility for sourcing and product development.
Mr Whelan said in a statement: "I am extremely proud of JJB which has grown from a single sports store in 1971 to a leading high street sports retailer today. It has developed into a mature, market leading business and continues to go from strength to strength. The development of the health clubs business has been a major success and combined with other retail initiatives, including the Nike and adidas in-store areas, the company has exciting times ahead of it. Retiring from the board and selling my stake in the business I founded has not been an easy decision but it has been made easier by my confidence in the senior management team. I wish the company every success." However, the Financial Services Authority (FSA) is understood to have launched an investigation into the sale, after Mr Whelan promised shareholders in January that he would not sell his stake in the company for at least the next 12 months.
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