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French Connection receives takeover offer of £29m

The company, which began a formal sale process on 2 March 2021, said its second largest shareholder Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Limited joined together to make a bid

French Connection has announced that it has received a buy-out offer of £29m by its second largest shareholders Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Limited.

The offer comes as its share price increased by 15% to 26.9p, giving it a market value of roughly £26m.

The company, which began a formal sale process on 2 March 2021, said its indicated offer price should equate to “30 pence per share in cash” and that discussions with the consortium “remain ongoing”.

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In the group’s recent trading update for the 12 months to 31 January 2021, revenues plummeted 40.4% year-on-year to £71.5m.

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Underlying losses for the period also expanded to £11.7m, from £2.9m the year before, as Covid-19 caused store closures and a reduction to wholesale demand.

Stephen Marks, chairman and chief executive at the company, said at the time: “Our key focus for the year has been to navigate our way through the difficult challenges we have faced as a result of the Covid-19 pandemic.

“Trading had been broadly in line with our expectations at the time of the financing but we were then hit by the second and third national lockdowns in the UK.”

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