Fosun International Limited, Chinese conglomerate, has announced its takeover bid for German fashion retailer Tom Tailor.
Tom Tailor shares increased by 14 per cent to 2.46 euros after Fosun increased its shareholding to more than 35 per cent by acquiring new shares worth 2.26 euros each.
This will increase Fosun’s stake to more than 30 per cent threshold that triggers a compulsory takeover offer under German legislation.
The increase in capital will raise 8.6 million euros and an offer price of 2.26 euros per share would give Tom Tailor a total value of 96 million euros.
The Chinese firm said that it will greatly benefit from target company’s long-term growth potential.
Lately, Fosun has been expanding its presence and interest in Europe at a time when Chinese consumers are driving growth in expending luxury items. The company took control of Lanvin in 2018 and then acquired Austria-based luxury lingerie and legwear brand Wolford. Besides, it also has a stake in Caruso – a high-end Italian menswear label.
Notably, Tom Tailor’s share price has slumped to 80 per cent since January 2018.
