Limited Brands agrees to buy La Senza shares as takeover offer
16 Nov '06
3 min read
Limited Brands Inc and La Senza Corporation, a leading Canadian and international intimate apparel specialty retailer in Canada, announced that they have executed a definitive support agreement under which Limited Brands has agreed to purchase all outstanding shares of La Senza for C$48.25 per share in cash via a takeover (or tender) offer.
The proposed transaction has an equity value of approximately $710 million (Canadian) or $628 million (U.S.). The offer price represents a premium of 47.8 percent based on the C$32.65 closing price for La Senza shares on the Toronto Stock Exchange on November 14, 2006.
As of November 14, 2006, La Senza owns and operates 318 stores in Canada, and licensees operate a further 327 stores in 34 other countries.
As of October 28, 2006, Limited Brands owns and operates 3,534 stores under the Victoria's Secret, Bath & Body Works, Express, Limited Stores and other brand names in the United States.
Irv Teitelbaum, Chairman & Chief Executive Officer and Stephen Gross, Vice Chairman of La Senza, who together started the original company 40 years ago (as Suzy Shier), will remain in their respective positions, together with Laurence Lewin, President & Chief Operating Officer who co-founded La Senza in 1990. La Senza will remain headquartered in Montreal.
Laurence Lewin, President of La Senza, added "there are no anticipated changes in leadership, strategy or management of La Senza. On the contrary, it is expected that this business combination will open up interesting growth opportunities and ensure a superb legacy for La Senza."
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