French Connection’s share price has surged after the ailing company announced it had received a generous takeover offer from a group of shareholders.
The British retailer, made famous by its controversial FCUK logo, has struggled during the pandemic making an operating loss of £11.7m in 2020 after sluggish sales caused revenue to fall by 40.4 per cent to £71.5m.
Today, share price is up 15 per cent after French Connection confirmed it had received an offer at the price of 30p per share, a cut above the previous close price of 23p. The offer values French Connection at approximately £29m.
Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers are amongst the shareholder group which reportedly made the offer. Ghura is the company’s second-largest shareholder with a 24.95 per cent stake trailing only Stephen Marks, the company’s CEO and founder.
French Connection has had a turbulent relationship with its suitors. Hopes of a takeover by investment firms Spotlight Brands and Gordon Brothers, caused share price to soar prompting Mike Ashley’s Frasers to offload 24.1m shares, the entirety of its 25 per cent stake. The early stage offer later fell through.
Talks with the shareholder group are ongoing a spokesperson for French Connection told Reuters.