SMCP Bondholders Initiate Sale of 37 Percent Stake
● The initial stage will last two months and could trigger a mandatory takeover.
PARIS — U.K.-based AlixPartners has launched the sale process for a 37 percent stake in accessible luxury player SMCP. The French fashion company also owns the Claudie Pierlot and Fursac brands.
“SMCP confirms that it has been informed by GLAS of its intention to initiate a sale process for 37 percent of the company’s capital. This point will be examined by the board of directors, which is meeting today as part of the approval of the 2022 annual accounts,” the company said Wednesday in a statement to WWD.
The meeting had been previously scheduled ahead of the release of fullyear financial results expected Thursday.
AlixPartners is acting receiver of 8 percent of SCMP stock, while GLAS holds 29 percent. Bondholders include asset management firms BlackRock and Carlyle, which took the equity stake after GLAS’ majority shareholder European TopSoho, the Luxembourg-based subsidiary of Chinese conglomerate Shandong Ruyi, defaulted on 250 million euros of debt in September 2021.
Shandong Ruyi positioned itself as the “LVMH of China,” and had attempted to build a multinational fashion conglomerate by acquiring brands including Aquascutum, Cerruti 1881 and Gieves & Hawkes in 2015, but struggled after the buying spree.
Together AlixPartners and GLAS’ shares total 37 percent of SMCP, which could trigger a mandatory takeover action under French law if a single purchaser snaps them up.
“It is not yet possible to assess whether the transaction will trigger or not a subsequent mandatory takeover bid,” AlixPartners said in a statement.
A mandatory takeover bid can be triggered if the threshold of 30 percent ownership is crossed. GLAS had transferred the shares to AlixPartners to avoid crossing the takeover threshold and was said to have been eyeing a sale since October 2021.
AlixPartners has enlisted French bank Lazard to advise on the sale. The initial search stage is expected to last two months, the company added.
Shares in SMCP saw an 8 percent bump on the Euronext stock exchange following the announcement.