Chinese investors in £29m swoop for loss-making lingerie business
Chinese investment company Fosun is about to snap up a controlling stake in Austria’s Wolford.
The deal will see Fosun pay around £29m to acquire 50.9% of the lingerie business from from its founding family and offer up to c.£19.6m as part of a capital boost.
The company confirmed it will make an offer to remaining shareholders of €13.67 per share (c.£12.9) to gain full control.
Wolford, headquartered in Bregenz, has operated at a loss for the last two years.
According to a report by Reuters, the company has struggled with a falling demand for its luxury products while facing logistical problems and management upheaval.
Since announcing its intention to sell in June last year, Wolford said around 50 investors expressed an interest in acquiring the founding family’s majority stake. The prospective buyers were mainly from North America and Asia.
Axel Dreher, CEO of Wolford, said in a statement on the company’s website: “We welcome the entry of a financially strong core shareholder which is experienced in the luxury sector and will enhance our access to Asian markets.
“This confirms the reputation of our brand and its growth opportunities.”
Wolford CFO Brigitte Kurz commented: “The capital increase will strengthen our long-term capital base and our liquidity.
“This enables us to accelerate the development of our promising online business and the redesigning of our market appearance. “