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Aussi fashion group Specialty Fashion receives takeover offer

By Angela Gonzalez-Rodriguez

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The ‘Down Under’ fashion conglomerate, which includes Millers, Katies, Crossroads, Autograph, City Chic and Rivers brands would have reportedly receive a takeover offer.

Australian media reported Wednesday that Specialty Fashion confirmed it has received a confidential proposal from a Middle Eastern investment company to privatise the company at 0.70 Australian dollars a share in cash. This offer equates to a premium of almost 35 percent on the last close price of 52 cents.

“The group has been in discussions with the counter party for a period of time in relation to a potential transaction,” Specialty Fashion told the ASX in a statement.

Although the name of the bidder remains undisclosed, the fashion retailer says it has granted access for due diligence. Specialty Fashion Group is being advised by Luminis Partners as financial adviser and Arnold Bloch Leibler on legal.

In the past years, the group’s profits have been burdened after it acquired warehouse-style clothing retailer Rivers in 2013.

As recently reported by the retailer, the total group’s sales revenue rose 4.4 percent in 2016 to 826.2 million Australian dollars. , included an underlying loss of $21.6 million attributable to Rivers.

On the back of the news of a potential acquisition, shares of Specialty Fashion Group Ltd. (ASX: SFH) were trading up, advancing a whopping 25 percent to 65 cents in the Australian Stock Exchange on early Wednesday trading.

Specialty Fashion