Fosun makes an offer for Tom Tailor

Chinese conglomerate Fosun has presented a takeover bid to Tom Tailor's shareholders, offering 2.31 euros per share to acquire the struggling German apparel company. The offer is not an attractive one, considering that the company's share price was 2.43 euros on Tuesday morning. The proposal follows Fosun's recent acquisition of additional shares in Tom Tailor, a transaction which pushed its stake in the company over the 30% mark, at which point shareholders are obliged to make an offer on the group's remaining capital.

The Chinese investment firm asserted that its below-market-value offer is not intended to acquire more than 50% of Tom Tailor's shares and voting rights, either directly or indirectly. Fosun's offer values the German chain at around 98 million euros.

Fosun further specified that its project for Tom Tailor does not involve changes to the Hamburg-based fashion group's commercial activities, retail locations or employees. According to a press release, the Chinese firm intends to "constructively support the efforts of the German brand's management and supervisory board."

Fosun has held a stake in Tom Tailor since 2014. Since then the company's share price has dropped more than 80%.

The Chinese group is a Hong Kong-based industrial and commercial conglomerate. Perhaps best known for its purchase of Club Med, the firm has also made a wide range of investments in the European textile industry, acquiring a majority stake in Austrian manufacturer Wolford last year and taking over French couture house Lanvin.

Fosun makes an offer for Tom Tailor

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