JD Sports invests in South Korea JV
JD Sports Fashion has entered into a joint venture agreement with South Korean footwear retailer, Shoemarker Inc (SMK), in relation to its J&S Partners unit, which currently trades as Hot-T.
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The company has bought an initial 15% of Hot-T for a cash consideration of around £5.5m. As part of the JV, it has a call option to buy a further 35% share following the finalisation of Hot-T's accounts for its financial year ending 31 December 2017.
JD Sports said its plans to exercise this option and to re-fascia the Hot-T stores as JD, although the business will continue to be operationally run by its existing management team.
Executive chairman Peter Cowgill said: "We are delighted to be entering into this JV which gives JD the opportunity to enter a new market of over 50 million people with a proven operator. This JV will further strengthen JD's global presence."
Hot-T is multi-branded footwear retailer in the athletic specialty sector of the market, with 23 stores in South Korea and its own website.