French Connection Share Discussion Threads

[spob] 24/9/2021 13:10

So it looks like the market is not holding out much confidence of any counter bids coming in above 30p

Or the price would now be sitting above 30p


I guess any offer is better than nowt, given the performance of this company over the last decade

Good luck to long term holders, holding out for more

[rainmaker] 24/9/2021 12:57

irishlass224 Sep '21 - 13:13 - 1922 of 1923

"The rns was published to attract counter bids. It will sell for a lot more than 30p."

Well done Irishlass, you hit the nail fairly and squarely on the head!

AIMHO, DYOR as I have done mine

regards

[spob] 24/9/2021 12:17

Stephen Marks is emotionally attached to this continual loss maker

He should take the offer, because he does not have the ability to make this business profitable

just my opinion

[irishlass2] 24/9/2021 12:13

The rns was published to attract counter bids. It will sell for a lot more than 30p.

[spob] 24/9/2021 12:04

No, the market does not believe an offer at 30p will be 'ACCEPTED'

[boonkoh] 24/9/2021 11:35

Well, it looks like the market doesn't quite believe a firm offer at 30p will materialise. Lots of sells below 26p, 13% discount.Which looks very weird because (1) offer is from a significant shareholder, so is serious. (2) they went to the trouble to assemble a consortium too for the offer. (3) board is willing to sell and actively looking for a buyer.

[she-ra] 23/9/2021 14:49

hxxps://fashionweekdaily.com/french-connections-carolyn-glynos-reveals-whats-ahead-as-the-brand-prepares-to-celebrate-its-50th-anniversary/

Tabhair you may want to read this article because it contradicts your post.

[tabhair] 23/9/2021 14:35

People have talked about French Connection shedding the retail business and focusing on wholesaling/licencing for years. This has still not happened yet, and in the meantime the room for manoeuvre has shrunk as the company has went from £40m net cash to £2m in debt (number next month likely to be worse again). Are we really to believe that break-even for the retail business is just around the corner? With the balance sheet of the company in such poor shape, I don't think the company even has long left to turn it around, and now that the company now in a net debt position, that time grows even shorter as the interest rate on the £15m credit facility is a chunky 7.5%. Look at the other companies that French Connections lenders have "backed" before, makes for grim reading -

Considering that Marks has rejected offers down through the years at higher offers than the 30p offered today, I fear that he may be stubborn and decide to go down with the ship. I could see him turning down bids in the region of 30p, pulling the formal sale process, only to end up with the company going bankrupt in a year or two. He's been running the company into the ground for the best part of a decade, why change now?

[thomstar] 23/9/2021 13:14

Looks like we're locked in at 26.5

[rainmaker] 23/9/2021 10:55

42p apparently in January last year.

[boonkoh] 23/9/2021 10:39

Fascinating to see sellers exiting at 26p. Wondering if they are just limit orders being caught out.I also note that pre-covid they received a bid (32p I think?) and rejected. Obviously situation has changed. Less cash in the bank now. But also much less lossmaking stores, and rent reductions in the bag now, and more licensing income.Think we'll end up with a final offer in the 35-40p range IMO. But depends on how trading has gone so far since reopening and their cash position, as that might force them to do a cheap buyout vs an equity fundraising.

[fart_conductor] 23/9/2021 10:22

Market stil asleep 26p

[boonkoh] 23/9/2021 10:00

30p..! That would be daylight robbery.Don't forget earlier this year there were 3 other bidders circling. They might appear out of the woodwork now. Strong likelihood that we'll get a counterbid, so I would sit tight unless the share price is like 35-40p.On an underlying valuation level I'll be disappointed to have to sell my FCCN below 50-60p, which I think can be achieved in the next 12 months.

[rainmaker] 23/9/2021 09:57

French Connection Group PLC Statement Regarding Share Price Movement

23/09/2021 10:31am
UK Regulatory (RNS & others)

French Connection (LSE:FCCN)
Intraday Stock Chart

Thursday 23 September 2021


RNS Number : 7683M

French Connection Group PLC

23 September 2021

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

THIS IS AN ANNOUNCEMENT OF A POSSIBLE OFFER FALLING UNDER RULE 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS. IT DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. ACCORDINGLY, THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION (EU) NO 596/2014 AS IT FORMS PART OF RETAINED EU LAW (AS DEFINED IN THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THE INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN FOR THE PURPOSES OF MAR.

French Connection Group PLC

(the "Company")

Statement Regarding Share Price Movement

As announced on 2 March 2021, the Company is conducting a formal sale process. The Board of French Connection Group PLC notes the recent share price movement and confirms that it has received an approach from a consortium of bidders including the Company's second largest shareholder Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Limited (the "Consortium") as a potential offeror for French Connection Group Plc, which may or may not result in an offer for the Company. The indicated offer price is 30 pence per share in cash.

Discussions with the Consortium remain ongoing. Accordingly, there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made (although any offer is likely to be in cash). Further announcements will be made as appropriate in due course.

This announcement has been made without the consent of the Consortium.

Enquiries:


French Connection Group plc
Neil Williams, Chief Operating Officer [phone]
WH Ireland (Sole Broker & Financial Adviser)
Adam Pollock (Corporate Broking)
Adrian Hadden / Ben Good (Corporate Finance) [phone]
Paternoster Communications
Tom Buchanan [phone]

Further information

WH Ireland Limited, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of any offer to buy, sell, subscribe for any securities or the solicitation of any vote in any jurisdiction.

The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

Disclosure requirements of the Takeover Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on [phone] if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

Website publication

In accordance with Rule 26.1 of the Code, a copy of this announcement will be published on the Company's website at www.frenchconnection.com promptly and by no later than 12 noon (London time) on the business day following this announcement. The content of this website is not incorporated in, and does not form part of, this announcement.

Rule 2.9 disclosure

In accordance with Rule 2.9 of the Code, the Company confirms that, as at the date of this announcement, its issued and fully paid share capital consists of 96,612,934 ordinary shares with a nominal value of 1 pence each. The International Securities Identification Number (ISIN) for the ordinary shares is GB0033764746.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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END

SPMFZGZLLFGGMZG

(END) Dow Jones Newswires

[rainmaker] 14/9/2021 12:56

"This is an excruciating long wait since the last update."Boonkoh,if you're not already familiar with it, welcome to wonderful world of Stockmarket Value Investing and all those personal qualities eg patience,discipline etc that your Primary School told you were important but you didn't understand why at the time but you do now!

I calculate French Connection's intrinsic value to be substantially above current prices and IMHO we therefore have a huge margin of safety acting as a buffer or cushion to protect us. If you read the annual reports, you'll realise that the average retail shop lease has very little time left to run and that as leases expire, French Connection are ruthlessly negotiating sharply lower rents and more flexible terms or simply handing back the lease. Of course in the current, very testing high street retail climates with plenty of unoccupied retail outlets, the Landlords are only too willing to oblige. So I believe the days of massive loss making retail outlet division for French Connection are long gone. The other two divisions, the wholesale business which is particularly strong in North America and the licensing business are both excellent businesses. FC also have some £26mln of tax losses to utilise so forgetting the prospective bidders for a moment, if we have news of more favourable trading- which IMHO we should get and a retail division near break even then IMHO the share price can easily double from current levels.

AIMHO, DYOR as I have done mine.

regards and best wishes

[paulypilot] 13/9/2021 18:04

It doesn't need more cash - remember that the loan facilities were set up some time ago, and look adequate.

[boonkoh] 13/9/2021 17:55

This is an excruciating long wait since the last update.Almost makes me suspicious that they're planning to announce a corporate action.... Either a firm bid has finally materialised or they need to raise more cash.... Choose your scenario!

[paulypilot] 31/8/2021 20:50

Why would it be good to sell the business when High Street footfall is still constrained? The longer things go on, then the more loss-making shops are closed, and the more recovery there could be in wholesale trading.

Patience is a virtue sometimes.

Liquidity is secured, thanks to previously announced working capital facility. What's the rush? This brand is valuable, I reckon.

[cropperfbn] 31/8/2021 17:52

The longest take over due diligence I have ever seen. Seems to have stalled and unless something soon need to cash in. Too much risk of it coming to nothing and then having the price to rely on fundamentals.

[boonkoh] 26/8/2021 11:24

I disagree, it is clumsy. You don't try to buy 240k of shares all at once, when the daily volumes sometimes doesn't even reach that.However you do it when you are genuinely in a hurry... Like front running imminent news...

[gleach23] 26/8/2021 10:37

I'd describe the buying as being more concerted than clumsy boonkoh

[thomstar] 26/8/2021 10:33

Yes this more like it!

[boonkoh] 26/8/2021 10:32

Nothing I can see. But you never know with FCCN in play for a bid... Just some clumsy buying?