Chow Tai Fook arm in bid for Giordano International
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Giordano International Ltd. climbed as much as 23% after an investment vehicle owned by Hong Kong’s third-richest person offered to buy the apparel retailer.
Clear Prosper Global Ltd., a BVI vehicle wholly-owned by Chow Tai Fook Nominee Ltd., offered to buy Giordano for HK$1.88 (24 cents) per share, according to a filing late Thursday. That’s an 18% premium on its most recent closing price, and shares surged to as much as HK$1.95 on Friday.
The investment vehicle and its related parties already hold a 24.57% stake in Giordano and the maximum cash consideration is HK$2.56 billion, according to the statement.
Chow Tai Fook Nominee is a private vehicle owned by the Cheng family, whose patriarch, Henry Cheng, is Hong Kong’s third-richest person with a fortune of $22.6 billion, according to the Bloomberg Billionaires Index. The family’s sprawling investment empire includes one of the world’s biggest jewelry chains, as well as real estate, infrastructure and hotels.
Established in 1981, Giordano has around 2,100 shops in more than 30 countries and regions, according to its website. The acquisition offer will let the group continue its existing principal business, and there are no intended job cuts, according to the statement.
Questions & Answers
Q.Who owns the investment vehicle making the acquisition offer?
Who owns the investment vehicle making the acquisition offer?
Clear Prosper Global Ltd., the BVI vehicle making the offer, is wholly-owned by Chow Tai Fook Nominee Ltd. This private vehicle belongs to the Cheng family, whose patriarch, Henry Cheng, is Hong Kong’s third-richest person.
Q.What is the current presence of Giordano International in the retail market?
What is the current presence of Giordano International in the retail market?
Giordano International, established in 1981, operates approximately 2,100 shops. These stores are spread across more than 30 countries and regions worldwide, according to information on its website.
Q.Are there any plans for job cuts at Giordano International following this acquisition offer?
Are there any plans for job cuts at Giordano International following this acquisition offer?
No, according to the statement, there are no intended job cuts at Giordano International. The acquisition offer also specifies that the group will be allowed to continue its existing principal business operations.
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