AlixPartners UK, led by Alastair Beveridge and Daniel Imison, has made an announcement regarding the sale of a 37% stake in SMCP, the premium French fashion company known for its brands Sandro, Maje, Claudie Pierlot, and Fursac. The sale process is expected to last several months, but currently, no information is available regarding potential buyers or the expected price of the stake. There is speculation in the industry about the possibility of this sale leading to a takeover bid for the entire SMCP group.
In France, a mandatory takeover bid is triggered when an individual or entity owns 30% or more of a company’s shares. However, if multiple buyers acquire the shares separately, a full takeover is not guaranteed. Currently, SMCP has a market capitalization of approximately €600 million, with a share price of €7.94. The news of the stake sale resulted in a share price increase of over 7%. Jefferies analysts have valued SMCP at €11 per share based on a 7x EV/EBIT multiple from a fundamental perspective.
AlixPartners has not provided any specific details regarding the timeline of the sale process, the conclusion of the sale, the identity of potential buyers, or whether the pledged shares will be sold to one or multiple buyers. Therefore, it is uncertain whether this transaction will trigger a subsequent mandatory takeover bid.
More than a year ago, SMCP came under the control of a group of former bondholders, including BlackRock and Carlyle, after the company’s previous owner, a subsidiary of the troubled Chinese conglomerate Shandong Ruyi, defaulted on €250 million of debt.
Useful links:
1. SMCP Official Website
2. AlixPartners Official Website
