JD Sports in South Korea joint venture

JD Sports Fashion has entered into a joint venture agreement with Shoemarker Inc, a South Korean retailer of footwear, in relation to J&S Partners Inc, a company owned by SMK, which currently trades as the multibranded Hot-T fascia.

JD has acquired an initial 15% of Hot-T for a cash consideration of approximately £5.5m

As part of the joint venture, JD has a call option, exercisable at its discretion, to acquire a further 35% share of Hot-T following the finalisation of Hot-T's accounts for its financial year ending 31 Dec 2017.

JD said it was its current intention to exercise this option and to re-fascia the Hot-T stores as JD.

It said the exercise of this option would result in the consolidation of the results and net assets of Hot-T into JD's accounts.

It said the business would continue to be operationally run by the existing management team.