Specialty Fashion Group’s Offshore Takeover

Specialty Fashion Group (SFG) have confirmed it has been speaking with Al Alfia Holding, a Middle Eastern investment company controlled by the Qatari royal family, who purchased Harrods from Mohamed al-Fayed in 2010.

“The group has been in discussions with the counter party for a period of time in relation to a potential transaction,” Specialty Fashion told the ASX in a statement.

Al Alfia Holding have offered 70 cents a share, bringing the total value of Specialty Fashion to $135 million, which is dear compared to the 52 cents it was valued at the day before (before news of the takeover bid broke).

Specialty Fashion Group have advised the offshore investment company has been granted access to its books for due diligence purposes, but with conditions that apply, there is no certainly a deal will go ahead.

If things do pan out however, a takeover of Specialty Fashion would mean the ASX listed retailer will become private. The company’s profits have been in a slump since its acquisition of fashion chain Rivers in 2013, with the Group reporting a net loss of $2.2 million in 2016.

SFG has advised that will provide further updates to the market as appropriate, adding that investors should not take any action until further notice.

Specialty Fashion is currently taking the advice of Luminis Partners for the financials, and Arnold Bloch Leibler on legal.

Specialty Fashion Group’s chief executive Gary Perlstein is a majority shareholder of Victorian-based apparel firm Cotton On Group. The company owns other clothing brands including Autograph, City Chic and Crossroads.

 

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