Race for Theme attracts new bid

High Fashion International (HFI) yesterday put forward a $61.67 million takeover bid for cash-strapped fashion retailer Theme International Holdings, in an attempt to outbid Giordano International and YGM Trading.

Giordano has proposed an offer of close to $70 million. YGM has put forward a near $110 million proposal.

The women's apparel-maker said it proposed to subscribe to $46 million worth of convertible loan notes and 627 million new Theme shares at 2.5 cents each, which together could give it a stake of up to 79.7 per cent.

The proposal is conditional upon agreement by Theme's creditor banks on an 88 per cent haircut on its total debt of about $240 million.

Giordano proposes an 88 per cent haircut and YGM 85 per cent.

High Fashion intends to apply for a waiver to make a mandatory general offer to remaining Theme shareholders, and maintain Theme's listing.

High Fashion director Raymond Wong Shing-loong said he saw synergies between the company and Theme, adding High Fashion could benefit from taking over Theme's retail network.

'We have substantial experience in production and exports marketing, while they [Theme] have a sizeable retail operation in Greater China,' he said.

High Fashion has a small start-up retail operation, with one outlet in Hong Kong and four mainland outlets.

Theme had about 120 executive and casual retail outlets in Greater China. Theme's shares were suspended yesterday pending an announcement on a proposal by a potential investor.

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