Esprit Holdings, the Hong Kong-based fashion group, has confirmed it is considering spinning off its European operation and listing it in London.
The group, which derives 66 per cent of its sales from Europe, also confirmed it was looking for a potential acquisition in the United States, which could include a controlling stake in Esprit US, in which it has a 5 per cent holding.
In December, Esprit shares began trading in London after a secondary listing.
Esprit's chief executive for Asia, Surinder Chhibber, said the secondary listing was aimed at making Esprit better known among European investors, before a possible spin-off and listing of the group's European operations.
He stressed the plan would only be acted on in the longer term.
'At some stage we would like to [list] because the European operations are substantially larger than the Asian operation,' he said.
Esprit has long complained that its Hong Kong-listed stock has been unfairly rated alongside other Hong Kong fashion retailers, without its large and growing non-Asian earnings being fully considered.