PARIS, March 1, 2010 (FBC) – Shares in contemporary French fashion group SMCP rose in morning trading.
By 0929 GMT, the shares were up about 7% in trading at 7.89 euros on Euronext in Paris.
Bondholders in fashion labels Sandro and Maje, who include asset manager BlackRock and private equity Carlyle, became equity holders in the company Europe Topsho, a division of Shandong Rui (002193.SZ) failed to meet its 250 million debt obligations. Euro ($265.95 million) shares in the French company may be exchanged in 2021.
In the year Chinese conglomerate Aquascutum, which acquired labels including Cerruti 1881 and Savile Row Jeeves & Hawkes, which began its acquisition spree in 2015, sought to build a rival empire for luxury behemoth LVMH, but struggled under the debt burden of the acquisitions.
Agents Alastair Beveridge and Daniel Emison of Alix Partners UK LLP said on Wednesday that a months-long sales process had begun, with the initial phase expected to last two months.
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SMCP said in an emailed statement to Reuters on Wednesday that it had announced the sale of the bonds and that the board would consider the matter at a pre-scheduled meeting to approve annual results.
Alastair Beveridge and Daniel Emison of AlixPartners UK LLP said it was unclear whether the transaction would trigger a mandatory bid for control, which any shareholder of more than 30% must do.
($1 = 0.9434 EUR)
($1 = 0.9400 EUR)
Reporting by Sudeep Kar-Gupta and Mimosa Spencer; Editing by Kim Coghill and Sharon Singleton
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