Groupe Lafuma confirmed it was in early discussions with E-Land about a possible acquisition by the South Korean conglomerate, which has major fashion and retail holdings in South Korea and mainland China.
“Lafuma, which continually monitors its development strategy and its share capital, confirms that E-Land has shown interest in the company and discussions are at a very early stage, with no guarantee at this stage regarding the outcome,” Lafuma said in a statement. The company said it would issue a press release if and when appropriate.
E-Land, which owns various retailing businesses, offered €35 per share for Groupe Lafuma, or more than twice the value shares were trading at Friday, according to a report attributed to the bi-weekly magazine La Lettre de L’Expansion. Investor responded to that report Monday by bidding up Lafuma's stock to €25 on the NYSE Euronext, up from €17 on Thursday.
According to some South Korean media reports, E-Land was among the companies working on bids this spring for Collective Brands, which was ultimately acquired by a consortium that included Wolverine World Wide Inc. and two investment firms.
Based in France, Lafuma owns the Lafuma, Millet, Oxbow, Le Chameau and Ober brands. The company returned to profitability in the fiscal year ended Sept. 30, 2011, reporting net income of €3,88 million on a 1.6 percent increase in revenues, which reached €249.4 million..
