Fosun Industrial set to take over Wolford
Fosun Industrial Holdings is set to acquire a majority stake in luxury Austrian textile manufacturer Wolford.
After reaching an agreement with the group’s main shareholder, the Chinese financial investment firm will take over more than 2.5 million shares, about 50.8 per cent of the total share capital of Wolford, for €12.80 (US$15.78) a share.
Yet to be approved, the share purchase agreement is expected to be subject to conditions including clearance by merger control authorities, reports Fashion United. Fosun is predicted to make a takeover bid to shareholders for the remaining shares.
Known for its hosiery, bras and bodywear, Wolford is goingthrough a business restructuring after falling into the red more than a year ago. It reported a loss (EBIT) of €15.7 million for the financial year to the end of April last year.
Fosun is expected to agree to a cash capital increase of €22 million, which may include a fresh share issue. A general meeting to resolve the cash capital agreement will take place in May following the clearance of Fosun’s share purchase.
Meanwhile, little more than a week go, Fosun became the majority shareholder of French fashion house Lanvin.