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Fosun close to Tom Tailor takeover, increases stake by over 30 percent

By Prachi Singh

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Business

Tom Tailor Holding SE has decided to implement a capital increase of 10 percent against cash contribution with partial utilization of the approved capital. The company said in a statement that 3,849,526 new registered shares will be allocated directly and exclusively to Fosun International Ltd. With the exclusive allocation of the shares created by the cash capital increase, Fosun's shareholding in Tom Tailor Holding will increase to over 30 percent, above the threshold set by the German Securities Takeover Act for acquisition of control.

"2019 will be a challenging year for the Tom Tailor Group - we will be further strengthening the growth of our core Tom Tailor brand in a difficult environment, and we want to make consistent progress in restructuring our subsidiary Bonita. The capital increase is an important step on this path", said Heiko Schäfer, CEO of the company.

The company added that issue price is 2.26 euros per share, 4.82 percent above current share price and the new shares will be eligible for profit participation as of January 1, 2018. The company will utilise net proceeds of around 8.6 million euros to support the ongoing restructuring measures at Bonita as well as to improve the equity and financing situation.

"By signing the capital increase, Fosun is making a strong contribution to force the ongoing restructuring measures at our subsidiary Bonita. We also see this as a strong signal towards our investors and financing Banks that our reliable anchor shareholder is willing to support Tom Tailor in the long run," added Thomas Dressendörfer, CFO of Tom Tailor Holding.

Picture:Tom Tailor newsroom

Bonita
Fosun International
tom tailor holding