SHANGHAI/SYDNEY, March 23 (Reuters) – Luxury group Lanvin, owned by Chinese conglomerate Fosun International, said on Wednesday it was targeting a listing on the New York Stock Exchange in a merger with a special-purpose acquisition company (PSPC).
The Lanvin Group, which owns the Lanvin, Sergio Rossi, Wolford and Caruso brands, hopes to raise 544 million dollars (around 494 million euros) on this occasion to finance its international development.
“We plan to accelerate the growth of our portfolio through organic development and targeted acquisitions,” said Joann Cheng, CEO of Lanvin Group, in a joint statement with Primavera Capital Acquisition Corporation (PCAC).
The announcement comes less than two weeks after US regulators warned that five Chinese companies listed on Wall Street could be delisted, amid trade tensions between the United States and China.
The deal, which values Lanvin Group at up to $1.9 billion, could also come under scrutiny from Chinese regulators, who are tightening oversight of offshore listings.
Joann Cheng dismissed those concerns during a videoconference on Wednesday, saying Lanvin 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 Europe, its main market.
PSPC
The group, which went under the Chinese flag in 2018, has agreed with an American “blank check” company affiliated with Primavera Capital Group, an investment fund created by the former president of Goldman Sachs for China, Fred Hu.
A PSPC (special purpose acquisition company) is a company with no operational activity whose securities are issued on the stock exchange for a limited period with the aim of carrying out one or more acquisitions in a particular sector.
Popular on Wall Street, the use of these types of companies has declined over the past year, but some Chinese companies still see them as a way to quickly access US markets.
“If you list on Nasdaq or the New York Stock Exchange, you have access to the most liquid market in the world and strong financial backing,” said Ronald Shuang, chairman of investment firm Balloch Holding Group, whose company has sponsored several US-listed venture capital firms focused on Chinese assets.
The Lanvin Group was originally called Fosun Fashion Group before adopting the name of its French luxury brand. (Samuel Shen and Scott Murdoch report, French version Tangi Salaün and Kate Etringer, edited by Jean-Michel Bélot)