Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Kapp-Ahl bids for Lindex

Share this article

08:56 CEST+02:00
Swedish clothing chain Kapp-Ahl has made a bid for rival Lindex, offering 7.013 billion kronor ($1.3 billion), or 102 kronor per share.

The offer gives a 15 percent premium on Lindex's most recent stock market valuation on 10th August, and on the company's share price over the last three months.

Lindex's board was not informed of the bid in advance, and was refusing to comment on the approach.

"We have nothing to say yet," said Conny Karlsson, chairman of Lindex, speaking on Monday morning.

The combined group would have 614 stores and a turnover of 9.6 billion kronor. Kapp-Ahl will finance the purchase through bank loans and a preferential share issue.

Kapp-Ahl plans to continue running two separate chains in the combined group. Both chains were founded in the early 1950s and have their main markets in Sweden, Norway and Finland. Kapp-Ahl also has stores in Poland, and Lindex has a small number of outlets in Estonia, Latvia and Lithuania. Lindex has 18 stores in Germany that it is in the process of closing.

The two chains serve different markets, with Kapp-Ahl selling low-price clothes for both sexes and all ages. Lindex stocks only women's and children's clothes, and has a strong focus on underwear.

Kapp-Ahl has a market value of 5 billion kronor, while Lindex is valued at 6.1 billion. Kapp-Ahl says that the combined group will be able to make annual efficiency savings of 150 million kronor.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement