JD Sports Fashion PLC (LON:JD.) announced it agreed non-binding terms to sell Sports Unlimited Retail (SUR) to Iberian Sports Retail for €16.5mln (£14.2mln).
SUR is a wholly-owned subsidiary based in the Netherlands operating under the Aktiesport and Perry Sport brands, while Iberian Sports Retail is another subsidiary based in Spain, of which the FTSE 100 company owns 50.02%.
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JD said that Iberian Sports Retail is more focused on the sporting goods sector than the core JD brand, so its management “will be better placed to drive growth and higher returns in SUR longer-term”.
However, since JD remains everyone’s parent, it will continue to make strategic decisions regarding their future.
The transaction will be funded with existing cash balances and resources and is expected to complete on 30 June.
Shares were flat at 946.2p on Thursday at the opening bell.