UPDATE 1-British retailer JD Sports to buy US rival Hibbett for $1.08 billion

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April 23 (Reuters) - JD Sports Fashion has proposed to buy American athletic-fashion retailer Hibbett Inc for about $1.08 billion, the companies said on Tuesday, as the British sportswear retailer expands across the southeastern U.S.

JD Sports, Britain's largest sportswear retailer, will pay $87.50 per Hibbett share in cash, representing a premium of about 20% to the U.S. firm's last closing price.

The Bury, Greater Manchester-based company said it expects to fund the deal and refinance Hibbett's existing debt through its existing U.S. cash resources of $300 million and a $1 billion extension to its existing bank facilities.

The enlarged group would have combined revenues of about 4.7 billion pounds ($5.80 billion) in North America, JD Sports said, adding that the region's contribution to total sales would increase to about 40% from the current 32%.

($1 = 0.8108 pounds) (Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)