French Connection Receives $40 Million Takeover Bid
French Connection Group Plc got a 29 million-pound ($40 million) takeover approach from a group of bidders that includes the struggling U.K. fashion retailer’s second-largest shareholder.
The retailer, once best known for its FCUK logo, began a sales process in March and said the consortium, which includes Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Ltd, had offered 30 pence a share. That’s a premium of about 30% to the company’s closing share price on Wednesday. Singh Ghura owns just over 25% of the company.
Chairman and Chief Executive Stephen Marks has had a difficult few years trying to turn around the business founded in 1972. The retailer has been closing stores and in April said that revenue had slumped 40% in the year ending Jan. 31.
Marks remains the chain’s largest shareholder. There can be no certainty that a firm takeover offer will be made, the company said.
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