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Summary
- The board of French Connection Group has received two bids for takeover, separately from Spotlight Brands and Go Global Retail.
- Shares of French Connection nearly doubled in the intraday dealings on 5 February.
Shares of French Connection Group Plc (LON:FCCN), the London-headquartered apparel retailer, nearly doubled in the intraday dealings on Friday, 5 February after the group received two takeover approaches. French Connection issued a clarification about the massive share price movement after the stock registered a gain of 41 per cent on Thursday.
The board of French Connection Group has received two takeover approaches, separately from Spotlight Brands and Go Global Retail, the company said in the early morning filing on 5 February. However, the firm has stated that the approaches received “may or may not result in an offer”.
Shares skyrocket
Following the development, shares of French Connection extended the gains after opening more than 24 per cent higher in the morning session on 5 February.
According to the latest data available with the stock exchange, the stock of French Connection skyrocketed as much as 91.69 per cent to a 52-week high of GBX 30 from the previous closing price of GBX 15.65 apiece.
Around 1414 GMT on 5 February, the stock of French Connection was trading at GBX 26.40, up 68.69 per cent from the previous market price.
French Connection shares (5-day performance)
(Source: EODHD/Others, Thomson Reuters)
After the massive spike in the share prices, the company’s market capitalisation went past £20 million in a few successive trades earlier on Friday. Up until 1343 GMT, more than 6.9 million shares of French Connection exchanged hands at the bourse translating into a total traded turnover of £816,433.
In the last 12-month stretch, the shares of French Connection failed to recognise a major bounce back after the stock slumped more than 90 per cent due to the Covid-19 pandemic-led rout in the equity markets. During the coronavirus-induced slump, the stock of French Connection had touched an all-time low of GBX 3 per share.
On a broader 5-year scale, the stock of French Connection is still trading at least 35 per cent lower, including the exceptional gain of more than 100 per cent in the last two days.
Talks in early stages
The ongoing discussions about the prospective takeover are at a very early stage, French Connection said in a regulatory filing. There is no certainty that the offer with either of the two will be made, the company said. Both Go Global and Spotlight are not in concert with each other and are being acting individually to avoid any doubt, the company added.
The announcement via London Stock Exchange by French Connection Group has been made without the consent of Go Global or Spotlight, the company clarified further. French Connection has said that it will inform about further developments in due course.
