SPD.L Shares FCCN.L Ratio Of 11%

February 1st, Britain

Retailer French Connection Group PLC (FCCN.L) disclosed that after the second largest shareholder Schroders Schroders sold its stake, French Connection Group PLC said in February 2nd that the UK was the largest.

The retailer Sports Direct International PLC (SPD.L) shares the company with a shareholding ratio of 11%.

Due to equity changes, French Connection Group PLC shares fluctuated day by day.

Schroders 2 said on the afternoon of 1 May that it had already sold 9.27% of its shares. According to market data, the average paction price per share was 33 pence.

With the news release, the stock jumped 18.6% to 39.75 pence pence, only Schroders did not disclose the buyers.

However, when French Connection Group PLC announced that Sports Direct was the receiver in February 2nd, the stock fell 5.03% cents to 37.75 pence.

Under the pressure of investors, French Connection Group PLC has been selling rumors.

It has been reported that many European and American retail investment companies and private equity funds are interested in buying French Connection Group PLC, and the United States Investment Manager Neuberger Berman has begun to contact. His company acquired the Marquee Neuberger of the British shirt brand Ben Sherman and Italy shoe brand Bruno Magli in early 2015.

In addition, the media has reported that a British company specializing in the rescue of the business -- Rutland Partners LP began to join the retail consultancy Quarto Advisors Ltd. research in 1 and February this year to acquire French Connection Group PLC at 40 million pounds, when the stock price of the group was at 40 pence, and the progress of the potential paction is unknown.

According to the world clothing and shoe net, French Connection Group PLC is seeking the recommendation of boutique investment bank Moelis & Co., while many potential buyers are in contact. Meanwhile, the market's speculation about Group founder Stephen Marks's willingness to sell is also heating up.

One source pointed out that the bid price of Stephen Marks may be close to one hundred million, which is not unreasonable for a brand that has been established for 44 years and has a mature retail network and wholesale customers.

Another source pointed out that the value of French Connection Group PLC was seriously underestimated, and there was no active trading negotiations at present.

Stephen Marks, who controls the shares of French Connection Group PLC 41.65%, accepted Reuters's visit and said, "this is nothing, so there is no comment."

However, Liad Meidar, who owns 8% of the group and publicly criticized the group's Gatemore Capital Management LLC management partners in July this year, supported Liad's potential sale potential, which is in line with the management of the fund reform group.

Gatemore Capital's previous requests include Stephen Marks Marks to take responsibility for the recession of the group in the past 10 years and to step down, replace two non-executive directors who have been in office for 9 years, Dean Murray and Claire Kent, and abolish the brand names "FCUK" which have been used so far, and believe that this logo has no longer "inspiring" role for customers.

At that time, Gatemore Capital also asked French Connection Group PLC to accelerate the closing speed and reduce the product line, and expressed the belief that the group could rely on its high-end.

And furniture brand Toast and young trend brand YMC to promote growth. It is estimated that if the profit and loss balance is achieved next year and the profit margin is raised to the industry level, its share price will reach 150 pence per share by the end of 2017.

French Connection Group PLC shares were created at 500 pence highs in 2004.

Sports Direct did not contact either of Stephen Marks or Gatemore Capita before entering the stock market, but Gatemore Capita expressed its welcome to Sports Direct in response to the paction and considered it an inspiring message.

In addition to the above three major shareholders, OTK Holding AS and Zoar Invest jointly hold French Connection Group PLC, about 9% of the shares.

At the end of January, the two investment companies and Gatemore Capita will have a total of 15% shares binding, trying to create more pressure on French Connection Group PLC.

According to the world clothing and shoe net, in the first half of July 31st, the income of French Connection Group PLC declined 8.7% to 69 million 200 thousand pounds, while the pre tax deficit still maintained 7 million 900 thousand pounds a year ago.

The group emphasized that sales in the UK and European markets resumed growth (6.5%), which accounted for 78% of revenue, while weak wholesale and authorized businesses (down 16.9% and 20% respectively) were expected to recover in the second half.

Stephen Marks expressed disappointment at its interim results in its earnings report. Gatemore Capital arranged a meeting with French Connection Group PLC management after its announcement, but Stephen Marks did not attend.

Neil Saunders, founder of Conlumino, a retail consultant, points out that private Holdings Company are very suitable for French Connection Group PLC, because private placement will push the latter to restructure to squeeze profits.

In addition, for overseas investors, the British target has become more attractive in the case of a sharp depreciation of sterling this year, 19% over a 30 year low.

More interesting reports, please pay attention to the world clothing shoes and hats net.