Pentland buys JD Sports stake

SHARES in JD Sports fell 6p to 202 1/2p after co-founder John Wardle sold an 11.5% stake at a discount to privately-owned Pentland Group, maker of Berghaus and Speedo products.

Wardle, 59, also chairman of Manchester City, said the sale 'is to allow me to diversify my investment portfolio as I move towards retirement'.

Wardle sold 5.4m shares to Pentland at 185p each, but still owns 14.6% of the retailer. His co-founder David Makin owns around 27%.

Pentland is based in Finchley, north London and owned by Stephen and Angela Ruben and their family. It supplies goods to the JD fashion stores and has sales of £400m a year.

The purchase raises the prospect that the Rubens may eventually buy the whole of JD, though an imminent deal is unlikely.

Chairman Peter Cowgill says Pentland has no hostile intentions. 'They have had a long working relationship with JD and probably view this as an attractive investment in a business where they have empathy,' he said.

He is 'not aware' of any plans for them to takeover the group or demand a seat on the board.

Broker Seymour Pierce rates the shares, which trade on 12 times forward earnings, a hold.