Cinven is the JJB stalker
SUPER-FIT private equity firm Cinven is the mystery bidder stalking JJB. Shares of the UK's biggest sports retailer soared 46 1/2p to 242p on Friday after it revealed that an approach had been made, which may lead to an offer for the company.
Rumours were rife about an agreed 260p-a-share cash offer, valuing JJB at £558m.
But talks with Cinven, which bought health club giant Fitness First for £580m in 2003, are believed to be at an early stage and it had not yet been granted access to JJB's books.
Sources suggest executive chairman Dave Whelan, whose family own nearly 40% of the shares, wants out and both he and JJB's board would accept 260p a share.
In June 2003 independent directors kicked into touch Whelan's attempt to take the group private at 220p a share.
Cinven has timed its approach perfectly. JJB is struggling and warned in August that profits will be about 20% lower than expectations because increased competition and wet weather had left it with a glut of unsold T-shirts and shorts.
Analysts slashed forecasts for this year from £88m to £70m.
Scottish tycoon Tom Hunter, who recently trousered a £9m profit after selling his 10.95% stake in Big Food Group, owns 7% of JJB. He is not linked to the bid approach but will be hoping a deal can be thrashed out.
