Fosun Fashion seeking investors
In this article (5)
Chinese conglomerate Fosun is looking to sell a stake in its luxury fashion business, which includes Lanvin.
According to a report by Bloomberg, an investor is being sought for the Fosun Fashion unit to help revamp and grow the business.
Fosun’s fashion division owns shareholdings of varying size in German fashion retailer Tom Tailor,US women’s fashion label St John Knits, Greek jeweller Follie Folli and Italian suit maker Raffaele Caruso. The company’s industrial division owns a majority stake in Wolford, the Austrian textile maker.
Bloomberg reports Fosun is seeking US$100 million and is negotiating with several prospective partners including Asian family businesses.
Investors who come on board may stand to gain from an IPO of Fosun Fashion in Paris under consideration for several years in the future, according to Bloomberg sources.
In the meantime, the capital would be used to grow the brands and boost profitability.
If a suitable partner cannot be located, Fosun may invest more of its own funds in the business.
Questions & Answers
Q.What is the primary objective of Fosun Fashion seeking new investment?
What is the primary objective of Fosun Fashion seeking new investment?
The capital raised is intended to help revamp and grow the business, boosting profitability and supporting the growth of its brands. It could also precede a future IPO in Paris.
Q.Which brands are currently part of Fosun's fashion division?
Which brands are currently part of Fosun's fashion division?
The fashion division includes varying shareholdings in Lanvin, Tom Tailor, St John Knits, Follie Follie, and Raffaele Caruso. Wolford is part of Fosun's industrial division.
Q.How much capital is Fosun reportedly looking to raise from a new investor?
How much capital is Fosun reportedly looking to raise from a new investor?
Bloomberg reports that Fosun is seeking US$100 million from a new investor. They are currently negotiating with several potential partners for this investment.
Q.What is Fosun's contingency plan if they cannot find a suitable investor?
What is Fosun's contingency plan if they cannot find a suitable investor?
If a suitable partner cannot be located, Fosun may choose to invest more of its own funds directly into the fashion business to support its growth.
Reader pulse
What does Fosun's move signal?
21,038 votes so far