Can Michael Kors Buy Jimmy Choo At A Price Of 800 Million?

According to the world clothing shoes and hats net, 800 million pounds is announced.

The latest acquisition offer.

According to the current exchange rate, this offer (about 1 billion 45 million US dollars) is slightly lower than the 1 billion 200 million dollar valuation of the previous reporter when making relevant reports.

According to the Australian media Sky News revealed that the above quotes are previously successful in the acquisition of the United States.

Company Michael Kors.

With the offer, Michael Kors will communicate with Jimmy Choo to complete the acquisition intention by the end of this month.

However, whether Michael Kors can finally buy Jimmy Choo will depend on the performance of other potential buyers in addition to whether the negotiations are successful or not.

Jimmy Choo can be said to be a good cake now.

Before Sky News broke the news, in addition to Michael Kors, the legendary buyer of the brand had already bought the US.

Kate Spade Coach, Qatar Royal Investment Fund Mayhoola, China Renaissance group and so on.

Now, Sky News has added a new name to this list, China Hongyi fund.

And according to the report, Hony fund is one of the most powerful opponents Michael Kors will encounter.

Jimmy Choo 2017 Pre-Fall advertising

Earlier, Luca Solca, director of luxury analysis department at Paris bank, said in an interview with Jing Tian media that the high quotations that may arise in the purchase will be a major obstacle for buyers in the industry and European buyers.

In contrast, China and Middle East buyers with more capital are likely to succeed.

From this point of view, Hongyi capital is quite competitive.

But aside from the offer factors, the capital company can also provide some help for the long-term development of Jimmy Choo.

Such advantages should not be ignored when considering the attractiveness of its acquisition negotiations.

We have mentioned many times in the report that in recent two years, the Chinese market has become the key to Jimmy Choo's for-profit.

This allows Hongyi from China to get a better impression by letting Jimmy Choo see the brand's future prospects in the Chinese market and even in the Asian market.

As for Michael Kors, which itself is a fashion company, enough to understand the market, it should also be willing to explore the potential of Jimmy Choo in addition to capital value.

This is probably what Jimmy Choo most wanted in the hands of private-owned hands, but it can't be given as a capital company's Hongyi.

Jimmy Choo 2017 Pre-Fall advertising

From the point of view of the acquirer, it is not just enthusiasm to spend money and show his sincerity.

Whether Michael Kors or Hongyi fund, the main reasons for acquiring Jimmy Choo are not hard to guess.

In the case of Michael Kors, the acquisition of Jimmy Choo will help to strengthen its footwear business which is still weak, which is beneficial to the long-term development of the company.

In the short term, this could also help Michael Kors boost its share price as a result of sustained decline in performance.

For Hongyi fund, the strong performance of Jimmy Choo in the Chinese market is undoubtedly the most attractive selling point.

What's more, when the pound's exchange rate continues to decline due to the influence of Britain's withdrawal from Europe, overseas buyers can complete the acquisition at this time, which is a very cost-effective option.

But these two brands also have their own concerns.

Michael Kors thought more about who to buy. In view of its recent stock market performance, even analysts suggested that it should first buy back its stock.

Hony fund needs to consider policy factors.

At present, the relevant policy provisions formulated by the state to prevent the outflow of foreign exchange funds may make them more prudent in making decisions.

As of press release, neither Michael Kors nor Hony fund made any public comments on this issue, and Jimmy Choo refused to respond.

When the list of the buyers is different, the longer the list is, the more likely the outcome will be.

More interesting reports, please pay attention to the world clothing shoes and hats net.