JD Sports Fashion PLC (LON:JD.) is set to move into the South Korean market after it inked a joint venture agreement with Shoemarker Inc. that will see it invest in the Hot-T fascia brand.
As part of the deal, JD has taken an initial 15% stake in Hot-T – which is owned by Shoemarker – for £5.5mln and has the option to acquire another 35% which it expects to do at the end of the year.
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The plan is for the 23 Hot-T stores along with the website to be run by the existing management team but to re-fascia them as JD.
"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,” said JD executive chairman Peter Gowgill.
“This JV will further strengthen JD's global presence.”
JD shares opened 0.3%, or 1p, higher at 373.1p.