// French Connection sold to consortium including its second-largest shareholder
// The retailer accepted a 30p-per-share offer from UK-based apparel industry entrepreneurs
// French Connection founder Stephen Marks remains its top shareholder
French Connection has been sold to a consortium including its second-largest shareholder in a deal valuing it at £29 million.
The fashion retailer accepted a 30p-per-share offer from UK-based apparel industry entrepreneurs Apinder Singh Ghura and Amarjit Singh Grewal, as well as holding company KJR Brothers Ltd.
It represented a 30 per cent premium to the share price when the bid was first revealed in September.
READ MORE: French Connection receives takeover bid from second largest investor
French Connection founder Stephen Marks remains its top shareholder with a 41.5 per cent stake, and was expected to retire from his role as chairman upon sale completion.
The retailer began seeking new buyers earlier this year as it struggled to recover from the effects of the pandemic.
Investment firms Spotlight Brands and Gordon Brothers pulled out of early talks to buy the company.
“Over the last five years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the French Connection Group to profitability,” Marks said.
“It was always our intention to look at the most appropriate ownership structure for the business once it was back on track, and, having conducted a formal sale process, the French Connection board has concluded that the offer being made by MIP is fair and reasonable.
“When the transaction closes, I will retire from French Connection. This is an appropriate time for me to step back from the business that I founded in 1972, and I would like to take this opportunity to thank all our people for their contribution to our achievements over the years. I wish them all every success in the future.”
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