BREAKING NEWS Fosun to Purchase Majority Stake in Wolford AG

Today the Austrian company announced that Fosun Industrial Holdings Limited (Fosun) and the main shareholder group (WMP Familien-Privatstiftung, Sesam Privatstiftung, and M. Erthal & Co. Beteiligungsgesellschaft m.b.H. as well as related parties) intend to conclude an agreement for the purchase of a majority stake in Wolford AG. The expected purchase price amounts to 12.80 EUR per share for an approxiamate 50.87% of the total share capital of Wolford AG. The closing of the share purchase agreement is expected to be subject to be subject to the fulfillment of certain conditions, but upon closing the purchase Fosun will be the new strategic majority shareholder of Wolford AG.

Fosun has been a hot topic lately as the company recently acquired Parisian fashion label Lanvin and was also involved with talks with La Perla, which eventually were derailed after a disagreement on moving production out of Europe.

In order to strengthen Wolford AG's financial structure, Fosun and Wolford AG intend to agree on a cash capital increase (shareholders' subscription rights being maintained). This will provide EUR 22,000,000 of fresh equity. However, this intended capital increase requires a resolution by general meeting.

Signing is scheduled for today but the closing share agreement and the general meeting that will resolve on the cash capital increase are expected to take place in May 2018. The general meeting will be convened after clearance of Fosun's share purchase by the competent merger authorities. 

In connection with the share purchase agreement, Fosun also communicated its intention to launch an anticipatory mandatory takeover offer to its remaining shareholders of Wolford AG (in accordance with the Austrian Takeover Act).