Calida Group, which is listed on the SIX Swiss Exchange, is seeking a majority stake in Lafuma, the French company that owns the Lafuma,  Millet and Eider outdoor apparel brands.



The offer made by Calida France to the Board of Directors of Lafuma proposes that Calida Group uses a reserved capital increase to build up its stake in Lafuma from the current 15.3 percent to 50.6 percent, and then offer to buy out remaining public shareholders. A second capital increase that maintains subscription rights would then provide an opportunity to invest in Lafuma on advantageous terms. The planned transactions would strengthen Lafuma's equity position enough to give it a solid platform once restructuring is complete.

 

 

The plan is to increase Lafuma Group's equity in a first step by a nominal €20 million by issuing 2.5 million shares reserved for Calida. The issue price is set at € 14 per share, which would mean Calida would pay €35 million. Following this transaction, Calida Group's stake in Lafuma would rise from the current 15.3 percent to 50.6 percent. The suggested issue price of €14 per share would represent a premium of around 5 percent over the weighted average price of Lafuma shares for the last 60 days. This transaction must be approved by an extraordinary general meeting of Lafuma shareholders that shall be held before the end of this year.

 

 

Following this capital increase, Calida Group would be obliged by the fact that it is majority shareholder to make a public takeover offer to other shareholders. Calida is offering Lafuma shareholders €14 per share. This price must be approved by the French financial market regulators and be confirmed by an independent evaluation report. The transaction is planned for the start of 2014.

 

 

In the next step, a second capital increase worth EUR 10 million will be carried out. Other shareholders' subscription rights will be applicable. The issue price is being set at €9 per share, which is a 36 percent discount on the takeover offer price.

 

 

Calida Group's desire for a majority stake reflects its belief in the potential of the Lafuma Group and its well-established sports clothing brands Lafuma, Millet, Eider and Oxbow. The Group, which is listed on Euronext, generated a turnover of €225 million last year. Once restructuring is complete, a well-capitalized Lafuma Group will make an important contribution to the further expansion of Calida Group.