JD agrees to safeguard pensions in Footasylum deal

JD Sports has agreed to “fully safeguard” the pension rights of Footasylum members in a takeover deal worth approximately £90.1m.

In the deal, announced today (18 March), JD Sports said that it has confirmed to the board of Footasylum that it would safeguard its current pension scheme.

According to Footasylum half year results, pension scheme costs totalled £127,000 in the 52 weeks to October 2018.

In a statement, JD said: “JD intends to fully safeguard the existing employment rights, including pension rights, of management and employees of Footasylum in accordance with contractual and statutory requirements.

"JD confirms that it does not intend to make any material changes in the conditions of employment of the employees and management of Footasylum.

“Footasylum operates a defined contribution scheme. JD has confirmed that it does not currently intend to make any changes to the terms of this scheme or level of employer contributions.”

JD said that the deal will allow the larger group to “take advantage” of business opportunities which it otherwise could not.

In February, JD acquired 19,579,964 Footasylum shares for between 50 and 75 pence a share.

Footasylum executive chairman, Barry Bown, said: "The Footasylum board has concluded that the offer represents the best strategic option for Footasylum and its employees.

“It believes the offer fairly reflects Footasylum's current market position and prospects on a standalone basis and, as such, that Footasylum Shareholders should be given the opportunity to realise value from the offer."

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