DJ SMCP Can Look Forward to Renewal as Parent Appears Set to Give Up Control -- Market Talk
A change in ownership at SMCP, possibly impending, would spell good news for the French fashion group, Jefferies says, upgrading the stock to buy from hold. Majority shareholder Shandong Ruyi looks set to hand over control of SMCP after its Luxembourg-based holding subsidiary failed to repay bonds by their due date. One of the company's private-investment creditors is a likely candidate to take ownership of SMCP, while a sale to another premium-fashion player could also be in the cards, Jefferies says. Either way, a parting of ways with struggling Chinese group Shandong Ruyi would lower SMCP's risk profile, and its underlying strengths paint an optimistic picture ahead, the investment bank says, raising its target price to EUR9.40 from EUR6.50. (joshua.kirby@wsj.com; @joshualeokirby)
(END) Dow Jones Newswires
October 05, 2021 02:06 ET (06:06 GMT)
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