A Takeover Offer on Tom Tailor is on the Table
The international arm of the Chinese conglomerate Fosun Group is yet again making a bid for a European fashion retail company. Fosun announced that they plan to elevate their existing stake in the German fashion chain Tom Tailor from 28.89% to 35.35%. According to law in Germany, a buyer attempting to gain more than 30% shares of a company is obliged to make a takeover offer for the remaining shares. Fosun duly offered EUR2.26 for each share to acquire all remaining stock.
Should the acquisition be successful, it would further expand the Chinese conglomerate’s reach in the European fashion industry. Chief executive of Tom Tailor, Heiko Schaefer is excited about the acquisition and said that he sees the takeover as a sign of faith in the decision to restructure the company after recent financial struggles.
Fosun is Staking its Claim in Europe
Fosun Group owns a significant stake in Caruso, a high-end menswear label located in Italy. In 2018 Fosun Group successfully acquired Lanvin, the oldest surviving couture label in France as well as Wolford, a luxury legwear and lingerie brand based in Austria. Fosun also owns Club Med, a successful French leisure company. Despite this drive to include more and more European investments in its portfolio, Fosun Group is still focusing most of its efforts on China.
Guangchang Says Don’t Give up on China
According to Guo Guangchang, chairman of Fosun International, the conglomerate plans to continue to ‘bet big’ on China despite the slowing economy. Guangchang claims that he expects a bullish market over the long term. Often referred to as the Chinese version of American billionaire and super-investor Warren Buffet, Guangchang asserts his firm belief in the potential of China – much like his American counterpart who is known for feeling the same way about his country.