Finish Line Inc Stock Soars on JD Sports Deal

Finish Line Inc (NASDAQ:FINL) stock was on its way up today on news of a merger deal with JD Sports.

Finish Line Inc Stock Soars on JD Sports Deal

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The deal will have JD Sports acquiring all shares of FINL stock for $13.50 each. This represents a 28% premium to the stock’s closing price on March 23, 2018. It also brings the total value of the deal to $558 million. Barclays, HSBC Bank and PNC Bank, National Association are providing JD Sports with financing for the deal.

Finish Line Inc notes that it will benefit from the deal by gaining access to JD Sports’ global reach. At the same time, JD Sports will gain a strong foothold in the U.S. through the 930 FINL stores in the country.

Finish Line Inc says that the deal has already received the unanimous approval of its Board of Directors. It also says that it is expecting the deal to close no earlier than June 2018. The deal will first need approval from shareholders in both companies. It will also need the approval of regulators before it can close.

Finish Line Inc is getting its financial advice for the deal from PJ SOLOMON and Houlihan Lokey Capital, Inc. It’s legal advice comes from Barnes & Thornburg LLP and Faegre Baker Daniels LLP.

JS Sports has Hughes Hubbard & Reed LLC, Addleshaw Goddard LLC and Taft Stettinius & Hollister LLP as its legal advisors for the deal. Financial advice was provided to it by Barclays.

FINL stock was up 30% as of noon Monday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/03/finish-line-in-up-on-jd-sports-deal/.

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