Specialty Fashion Group Ltd to sell City Chic and Autograph for $100 million? Share price up 21%

The Specialty Fashion Group Ltd (ASX: SFH) share price has gone up by 21% today after the company made an important announcement to the market.

Firstly, the company re-iterated that it has been undertaking a structural review and assessment of all option and opportunities to improve shareholder value. During that review the business received a number of ‘confidential, non-binding indicative proposals for a change of control of the overall company or the acquisition of certain brands.

Specialty Fashion Group today confirmed that an offer has been received from Anchorage Capital Partners for the acquisition of City Chic and Autograph for $100 million in cash. The proposal is expressed as being binding and is valid until the end of this Friday according to the release.

However, the Specality Fashion Group Independent Review Committee (IRC) noted that there are a number of things that need to be agreed with Anchorage and there are a number of conditions. Therefore, the IRC doesn’t believe that an agreement will be reached within the timeframe of the offer.

The company said that the IRC continues to consider all options to improve shareholder value. Specality Fashion Group re-iterated that there is no certainty that any proposal will result in a binding transaction.

Foolish takeaway

This seems like a very good offer for just two brands belonging to Speciality Fashion Group, which is why the share price rose so much today. I’d take the money if I were management, but I wouldn’t want to buy shares just because of this news. The share price increase now reflects the offer.

I’d much rather invest my money into these top stocks instead.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!