Fashion retailer YGM Trading has launched an almost $110 million offer for cash-strapped Theme International Holdings in an attempt to beat rival bidder Giordano International, according to sources.
The sources said YGM's offer included the injection of casual-wear arm Hang Ten into Theme, a rights issue, repayment of Theme's debts owed to red chip China Everbright, a partial repayment to Theme's creditor banks and a convertible loan note.
The offer is more generous in comparison with Giordano's almost $70 million proposal.
However, Giordano executive director Terry Ng Sze-yuen yesterday ruled out that it would chase after YGM's bid and warned the company might downgrade its proposal.
'One of the conditions of our proposal is a satisfied due-diligence exercise on Theme's books.
'In the wake of possible hidden risks and liabilities, we won't rule out raising the haircut or cutting prices,' he said.
