MIP Holdings acquires UK retailer French Connection for £29 mn

MIP Holdings Ltd, a newly incorporated entity directly owned and controlled by Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Limited, has entered into an agreement with the UK-based global retailer French Connection Group PLC to acquire it for £29 million. The retailer has accepted the offer of 30p-per-share from the entrepreneurs.

Stephen Marks, chairman and founder of French Connection, will retire from the company after the transaction closes.

Marks said in a statement: “Over the last 5 years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the French Connection Group to profitability. It was always our intention to look at the most appropriate ownership structure for the business once it was back on track, and, having conducted a formal sale process, the French Connection board has concluded that the offer being made by MIP is fair and reasonable.

MIP Holdings Ltd, a newly incorporated entity directly owned and controlled by Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Limited, has entered into an agreement with the UK-based global retailer French Connection Group PLC to acquire it for £29 million. The retailer has accepted the offer of 30p-per-share from the entrepreneurs.

“The price we have negotiated is at a significant premium to the share price prior to the commencement of the Offer Period and demonstrates the potential offered by the French Connection brand. The French Connection board is unanimous in recommending the acquisition to shareholders.”

Commenting on the acquisition, Apinder Singh Ghura, director of MIP, said: “We are pleased to have reached an agreement with the French Connection directors on this recommended acquisition. We are looking forward to working with French Connection’s management to execute and implement MIP’s strategic plans to facilitate the future growth and profitability for the business.”

The acquisition will come into effect by means of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act.

Fibre2Fashion News Desk (KD)