Fosun plans Tom Tailor takeover bid
Hong Kong-listed Chinese trading group Fosun has launched a Tom Tailor takeover bid.
Fosun has long held a cornerstone stake in the German-listed fashion retailer, which has several thousand stores, franchises and shops-in-shops around the world, trading under its own name selling men’s and women’s fashion and under the womenswear label Bonita. Its core markets are Germany, Austria, Switzerland, Southeastern Europe and Russia.
Fosun said in a stock exchange filing that the Tom Tailor takeover bid follows an increase in its shareholding which will take its stake above the 35 per cent level which triggers a mandatory takeover offer under German law.
In a statement, Fosun said it would benefit from the target company’s long-term growth potential.
“The company considers the transaction to be an attractive investment in its sector as it sees economic potential in Tom Tailor.”
Founded in Hamburg in 1962, Tom Tailor has encountered challenges in recent years. Its share price has plunged 80 per cent since January last year.
The company focuses on mid-priced casual wear for men, women and children, accessories, and home textiles.
Fosun has been expanding its interests in Europe in recent times, acquiring Lanvin last year, along with Austrian luxury lingerie brand Wolford. It also has a stake in menswear label Caruso.