Home / Knowledge / News / Fashion / BDH to subscribe for €10.0m of new equity in MBFH
BDH to subscribe for €10.0m of new equity in MBFH
Aug '08
Burani Designer Holding N.V. a company offering Italian lifestyle products and services to customers world-wide, announces a partial tender offer for up to 4,486,154 shares in its subsidiary Mariella Burani Fashion Group S.p.A.

The partial tender offer is priced at €17.50 per MBFG share and represents up to 15% of the share capital of MBFG. As part of its interest in MBFG, BDH currently holds a 60.9% direct stake.

Structure and group reorganisation The offer will be made by a subsidiary of BDH, Mariella Burani Family Holding S.r.l. (“MBFH”), a company which has been acquired by BDH from the Burani family (the controlling shareholder of BDH) for nominal consideration for the purpose of making the partial tender offer. BDH will also transfer its direct interest in MBFG to MBFH in exchange for further shares in MBFH.

The cash consideration of up to €82.5m (including costs) payable by MBFH will be funded as follows:
• BDH will subscribe for €10.0m of new equity in MBFH;
• The Burani family will subscribe for €6.0m of new equity in MBFH;
• MBFH will issue €20.6m of preference shares at par to third party investors. The preference shares carry a 12% coupon and are redeemable in 2010 at either MBFH's or the investors' option; and
• MBFH has subscribed for new debt facilities of €45.9m. If the partial tender offer is not fully taken up, these respective contributions will be scaled back pro rata.

Depending on the take up of the partial tender offer, BDH will hold not less than 92.5% The Chairman of MBFH will be Walter Burani (also Chairman of MBFG).

The other directors of MBFH will be Giovanni Burani (Chairman of BDH and CEO of MBFG), Giuseppe Gullo (CFO of BDH and CFO of MBFG), Davide Enderlin (Non Executive Director of BDH) and Stefano Maria Setti.

All MBFH directors have been nominated by BDH and are appointed for a three year term. Timing It is envisaged that the partial tender offer will be completed in October 2008.

Other The partial tender offer is being conducted in order to increase the BDH's interest in MBFG, taking into consideration the current market price of MBFG shares, which BDH believes is attractive.

The impact on BDH earnings of the proposals will depend on the future performance of MBFG.

Burani Designer Holding N.V.

Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Indian textile value chain

'One nation, one tax' is a great concept

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search