Destination Maternity, Orchestra Prémaman to close merger

05 Jun '17

1 min read

The world's largest designer and retailer of maternity apparel, Destination Maternity will close its merger with European manufacturer and retailer of children's clothing Orchestra Prémaman S.A, during the third quarter of 2017. Both the companies are working through the regulatory process, as well as the pre-closing integration planning.

Upon completion of the merger, each Destination Maternity shareholder will receive 0.5,150 of an Orchestra-Prémaman ordinary share in the form of American depositary shares. This stock for stock transaction is expected to be tax-free for US federal income tax purposes to Destination Maternity shareholders.

Work is proceeding on the preparation of the registration statement on form F-4 to be filed with the Securities and Exchange Commission (SEC) covering the shares of Orchestra- Prémaman, represented by American depositary shares. These shares will be transferred to holders of Destination Maternity shares in exchange therefore upon completion with the merger, as well as the coordinated filing with Orchestra-Prémaman's French regulator, the Autorité des marchés financiers (AMF).

After closing, Destination Maternity shareholders will own 28 per cent of the combined business immediately after the merger, including approximately 3 per cent to be acquired by an affiliate of Orchestra-Prémaman due to the Destination Maternity shares it owns. (RR)

Fibre2Fashion News Desk – India

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