Luxury fashion company Lanvin Group, owned by China’s Fosun, plans a New York listing via SPAC

0

Lanvin Group, the luxury fashion company owned by Chinese conglomerate Fosun International Ltd, announced plans on Wednesday to list in New York by merging with a special purpose acquisition company (SPAC) and aims to raise up to $544 million to fund its global expansion ambitions. .

Lanvin Group, which manages iconic brands such as Lanvin, Sergio Rossi, Wolford, St. John Knits and Caruso, has agreed to partner with a US-listed “blank check company” affiliated with Primavera Capital Group , an investment company founded by former Fred Hu, chairman of Goldman Sachs Greater China.

“We plan to accelerate the growth of our portfolio through organic development and disciplined acquisitions,” said Joann Cheng, Chairman and CEO of Lanvin Group, in a joint statement with Primavera Capital Acquisition Corporation (PCAC).

The announcement came less than two weeks after U.S. regulators named five New York-listed Chinese companies at risk of delisting, and shows some Chinese companies are undeterred by the long-running audit dispute between Beijing and Washington.

The planned transaction, which values ​​Shanghai-based Lanvin Group at a combined net worth of up to $1.9 billion, could also come under scrutiny from Chinese regulators, who are stepping up oversight of listings on the market. ‘foreign.

Cheng dismissed those concerns during a videoconference on Wednesday, saying the Lanvin Group has a portfolio of global brands and a diverse investor base.

The group, which operates in more than 80 countries with more than 300 retail stores, plans to open more than 200 new stores by 2025, seeking to seize growth opportunities in North America and Asia, beyond of his stronghold in Europe.

SPACs are shell companies that raise funds from institutional and retail investors via market listings and place them in a trust for the purpose of merging with a private company and taking it public.

Wall Street’s frenzied blank check operations have slowed over the past year, but some Chinese companies still see it as a shortcut to accessing US capital markets.

Ronald Shuang, chairman of boutique investment firm Balloch Holding Group, said many Chinese companies still want to list in the United States, despite geopolitical tensions.

“If you’re listed on Nasdaq or the New York Stock Exchange, you have access to the most liquid market in the world and strong capital backing,” said Shuang, whose company has sponsored several U.S.-listed SPACs. with a focus on Chinese assets.

The Lanvin Group was previously known as Fosun Fashion Group before adopting the name of the French luxury brand. It said it aims to raise a total of $544 million from the proposed combination with the Primavera SPAC.

This includes up to $414 million in cash in the trust account, as well as fully committed subscriptions and forward purchase contracts worth $130 million from investors including Fosun International, ITOCHU Corp and Stella International Ltd.

Max Chen, Partner at Primavera, said: “The Lanvin Group and Primavera share the same vision of nurturing and invigorating world-class luxury brands.

Be smart with your money. Get the latest investing news straight to your inbox three times a week, with the Globe Investor newsletter. register today.

Share.

About Author

Comments are closed.