(BFM Bourse) – New episode in the long series of the restructuring of SMCP’s shareholding. A decision by a London court could speed up the process, reports Les Echos.
The process of restructuring SMCP’s capital could accelerate after a British court decision handed down at the end of January. According to Les Echos, SMCP’s creditors would be likely to “quickly” recover shares in the “accessible luxury” specialist currently held in a company based in the British Virgin Islands.
These securities correspond to a block of shares representing 16% of the capital of SMCP. These 12 million shares were then sold in November 2021 to Chenran Qiu, the daughter of the former majority shareholder of SMCP, for a symbolic euro, while the stock was trading at 7.75 euros that day, explains Les Echoes.
However, this sale was carried out in “utmost secrecy”, specifies the economic daily to the extent that European TopSoho, the Luxembourg subsidiary of Shandong Ruyi, shareholder of 53% of SMCP’s capital, had defaulted on its debt. in September 2021. It was in the form of a bond exchangeable into SMCP shares in the amount of 250 million euros and which represented approximately 37% of the capital of the leader in “accessible luxury”.
The epilogue of a shareholder crisis?
The creditors of European TopSoho, united under the Glas “trustee” (acting on behalf of the creditors, the BlackRock, Carlyle, Anchorage, Boussard and Gavaudan funds) had thus recovered 29% of the capital to repay themselves. And not 37% to stay below the 30% threshold, and avoid triggering a public takeover bid (OPA). Glas has in fact pledged the remaining 8%.
It was this same Glas who took the case to court with a view to having the transfer canceled, judging this sale to be “potentially illegal”. Chenran Qiu and Dynamic, for their part, obtained time from the British commercial justice system to defend themselves. In return, the High Commercial Chamber of London demanded from the daughter of the former shareholder of SMCP and its holding company, the payment of a deposit of nine million euros each, or a total of 18 million euros as guarantee, specifies Les Echos.
Failing this, the creditors could go on the attack again with a view to recovering this 16% of SMCP’s capital. And thus have free rein to initiate the sale of 37% of the capital of SMCP, as announced in March 2023.
On the stock market, the prospect of a restructuring of capital leads to a surge in SMCP. The title of the specialist in “accessible luxury” rose another 6.2% around 11:20 a.m., after having jumped 9% in the first exchanges.
A deterioration of the market environment
This new speculation on the title comes two days before the publication of the annual results of the accessible luxury specialist. SMCP had already warned at the end of January that the 2023 vintage was difficult for it to negotiate, citing a deterioration in the economic context.
The parent company of Sandro and Maje was forced to lower some of its financial targets for 2023, after a previous adjustment last September.
The group is now targeting a turnover of 1.23 billion euros, i.e. growth at constant rates of 3.8% in 2023, compared to “mid-single digit” growth. around 5%) anticipated until then. SMCP’s profitability will also be worse than expected. The adjusted operating profit margin (EBIT) is therefore expected between 6.4% and 6.6% of turnover, compared to a previous estimate of 7% to 9%. Which reflects a clear drop compared to the 9.2% posted in 2022.
On this occasion, the company will also provide additional information on the progress of its savings plan for 2024.
Sabrina Sadgui – ©2024 BFM Bourse
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