Uniqlo “sees†Giordano’s purchase price
Garment retailer Giordano (0709.HK) suspended trading on Friday and was later informed that the company has received a number of buyers for purchase, including Uniqlo, the world's seventh-largest clothing chain.
Giordano later confirmed that Fast Retailing (9983.TO), a Japanese UNIQLO holding company, had indeed contacted Giordano and may form an offer, but he has not yet received any offer or intention. However, Hong Kong media pointed out that Fast Retailing has appointed HSBC as the financial adviser to the proposed acquisition, and Giordano’s management has also appointed Goldman Sachs as a financial advisor to resist the acquisition.
It is understood that Fast Retailing, which has a clothing style and market strategy similar to Giordano, is currently listed in Japan with a market value of more than HK$68 billion, almost 10 times that of Giordano.
Since the acquisition proposal was not actively answered by Giordano's management, buyers turned to lobbying for fund shareholders and did not rule out hostile takeovers by lobbying shareholders. Harris Associates, one of the company’s fund shareholders, confirmed to Bloomberg, “They (Fast Retailing) had contacted us. They are interested, but I don’t know if they are interested in 100% acquisitionsâ€.
Although it is unclear whether Fast Retailing intends to become a strategic investor or want to buy a controlling stake in Giordano, in any case, since the founder of Giordano - the chairman of the media (0282.HK), Li Zhiying will have the remaining 27% in 1996 After all the placements, Giordano has no single major shareholder and any potential buyer will have to face institutional shareholders.
According to a research report released by BOC International, although Giordano's management has no intention of selling its shares, Giordano's management currently only holds 3% of the group's shares. Therefore, whether Fast Retailing can ultimately succeed depends on the intention of holding five of Giordano’s five major funds. BOC International estimates that buyers may be able to raise their prices and use the model of about 20 times the market price or less than 20 times price-to-earnings ratio plus cash to lobby for the top five funds to support their acquisition plans. Giordano’s current P/E ratio is about 15 times.
Giordano later confirmed that Fast Retailing (9983.TO), a Japanese UNIQLO holding company, had indeed contacted Giordano and may form an offer, but he has not yet received any offer or intention. However, Hong Kong media pointed out that Fast Retailing has appointed HSBC as the financial adviser to the proposed acquisition, and Giordano’s management has also appointed Goldman Sachs as a financial advisor to resist the acquisition.
It is understood that Fast Retailing, which has a clothing style and market strategy similar to Giordano, is currently listed in Japan with a market value of more than HK$68 billion, almost 10 times that of Giordano.
Since the acquisition proposal was not actively answered by Giordano's management, buyers turned to lobbying for fund shareholders and did not rule out hostile takeovers by lobbying shareholders. Harris Associates, one of the company’s fund shareholders, confirmed to Bloomberg, “They (Fast Retailing) had contacted us. They are interested, but I don’t know if they are interested in 100% acquisitionsâ€.
Although it is unclear whether Fast Retailing intends to become a strategic investor or want to buy a controlling stake in Giordano, in any case, since the founder of Giordano - the chairman of the media (0282.HK), Li Zhiying will have the remaining 27% in 1996 After all the placements, Giordano has no single major shareholder and any potential buyer will have to face institutional shareholders.
According to a research report released by BOC International, although Giordano's management has no intention of selling its shares, Giordano's management currently only holds 3% of the group's shares. Therefore, whether Fast Retailing can ultimately succeed depends on the intention of holding five of Giordano’s five major funds. BOC International estimates that buyers may be able to raise their prices and use the model of about 20 times the market price or less than 20 times price-to-earnings ratio plus cash to lobby for the top five funds to support their acquisition plans. Giordano’s current P/E ratio is about 15 times.
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