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Fosun buying US$40m majority stake, and will launch full takeover, of Austrian luxury textiles firm Wolford

Chinese private conglomerate’s move comes just days after acquiring troubled 129-year-old French fashion house, Lanvin

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Fosun is buying a controlling 50.87 per cent stake in Vienna-listed luxury textiles maker Wolford for US$40 million and says it plans a full takeover of the business. Photo: AFP
Maggie Zhang

Fosun Group, one of China’s largest private conglomerates, is buying a controlling 50.87 per cent stake in Vienna-listed luxury textiles maker Wolford for 33 million (US$40 million), which will trigger a mandatory takeover offer for the whole business, the Austrian company has confirmed.

The deal involves Fosun Industrial, the Hong Kong-based subsidiary of Fosun, acquiring 2,543,694 shares from Wolford’s main shareholders at 12.80 euros per share.

Upon completion, Fosun will be Wolford’s new strategic majority shareholder and has also agreed to provide up to 22 million in fresh working capital for the firm, it said.

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Fosun has picked up its overseas acquisition activities again recently. The conglomerate snapped up Brazilian asset manager Guide Investimentos for US$52 million on Tuesday, five days after it announcing the acquisition of 129-year-old French fashion house Lanvin.

A Lanvin store in Paris. Fosun bought the 129-year-old French fashion house, as it returned in earnest to the international acquisition trail. Photo: Reuters
A Lanvin store in Paris. Fosun bought the 129-year-old French fashion house, as it returned in earnest to the international acquisition trail. Photo: Reuters
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The oldest French luxury business still in existence has been in turmoil since the shock sacking of popular designer Alber Elbaz two years ago. It sank into the red to the tune of 18.3 million in 2016, its first loss for a decade.

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