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By Zhang Erchi and Tang Ziyi / Feb 20, 2019 02:44 PM / Business & Tech

Fosun International branding is projected on a curtain during a news conference in Hong Kong. Photo: VCG

Fosun International branding is projected on a curtain during a news conference in Hong Kong. Photo: VCG

Chinese conglomerate Fosun International has launched a bid to take over struggling German clothing retailer Tom Tailor.

Fosun announced in a stock exchange filing on Tuesday that it will pay 8.6 million euros ($9.7 million) to lift its existing shareholding in Tom Tailor from 28.89% to 35.35% by buying new shares at 2.26 euros each.

Under German law, the buyers seeking a stake in a company higher than 30% are obligated to make a takeover offer for the shares of all other shareholders. Fosun offered a price of 2.26 euros per share to purchase all the other shares of Tom Tailor in cash. The deal hasn’t been finalized.

The bid for Tom Tailor comes after Fosun took control of French label Lanvin and Austrian lingerie maker Wolford last year.

Founded in 1962, Hamburg-based Tom Tailor mainly sells mid-priced casual wear in Europe. Its sales fell 3.2% year-on-year to 214 million euros in the third quarter last year, which the company blamed on a drop in clothing consumption in Germany.

Fosun started as a pharmaceutical company in 1994 but has evolved into a global investment conglomerate with assets spanning the financial, real estate, health care and fashion industries.

Related: Fosun Shares Slide After Viral Diarrhea Outbreak at Club Med Resort

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