JD Sports & Footasylum Tie-up Deal


Monday, 18 March: Shares on the FTSE 100 began the week strongly, climbing 0.98%, as a weak pound gave its constituents a boost. Having fewer international earners meant the FTSE 250 by comparison dropped 0.02%. On the whole global shares remain mixed, with various risks looming for investors. As alluded to, there’s no surprise that Brexit uncertainty continues, keeping a close eye on the UK. At the US open shares are mixed ahead of a Fed meeting which expects to affirm the banks intention to keep interest rates unchanged.

On the day the construction sector was one of the worst performing in the UK, after house price data showed prices rose at their lowest rate in 8 years. Miners outperformed on the day, with oil currently up over 1% at c $67.50 p/bbl, with precious metals also seeing small climbs.

One of today’s largest stories surrounded the deal between WorldPay and Fidelity National Information Services, which sees the latter purchase the global payment processing firm for £32bn. In 2010 RBS was forced to sell WorldPay under bailout conditions and since the business has gone from strength to strength. Shares rose over 9% in WorldPay during today’s session.

Domino’s Pizza group has denied claims of misleading investors over an on-going dispute with franchisee owners. Owners of such branches are fighting for a greater deal of profits, but a newspaper article has accused the company of misleading the City about resolving the ongoing dispute. Shares in the pizza maker closed the day +1.7%.

JD Sports has made an offer for struggling fashion retailer Footasylum, valued at £90.1m. The rival, whom already owns c.19% of the business, awaits expected shareholder approval on the deal. The news sent shares in ailing Footasylum 74% higher, whilst JD shares climbed 1%.

Communication services business Maintel’s shares jumped 15.5% after pre-tax profit and revenue climbed last year and the board expects further growth for next year. Asset manager Miton also performed well on Monday, shares jumping 11.5% after seeing growth in profit and AUM from last year. Elsewhere Moss Bros shares ticked up 2.5% after announcing that Colin Porter, CEO of Joules, will take over as Chairman from May.

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