The proposed combination of Lanvin Group with Primavera Capital Acquisition Corp. is expected to close by the end of the year, subject to customary closing conditions. This will pave the way for the Lanvin Group’s public listing.
The future New York listing of Lanvin Group (which owns Maison Lanvin and Club Med, among others) is currently being prepared. Primavera Capital Acquisition Corp (PCAC) has recommended that its shareholders vote in favor of the combination with Lanvin Group at its extraordinary general meeting to be held on December 9. PCAC, which is a special purpose acquisition company listed on the New York Stock Exchange, is also an affiliate of Primavera Capital Group, a global investment firm.
Lanvin Group, however, failed to comply with several elements of the shareholder agreement it signed with the French house’s minority investors. It then called its fashion division “Lanvin Group” without their permission, according to official documents released in recent days.
The listing on the New York Stock Exchange is a boon for the group, which needs cash to expand and mop up the losses of Lanvin and its other fashion houses. But before buying any shares, potential investors would be wise to carefully read the documents that Lanvin Group has filed with the U.S. stock market regulator, the Securities and Exchange Commission (SEC).
Lanvin Group and PCAC have revised the group’s pre-transaction equity value from $1.25 billion to $1 billion. The group believes that the adjusted valuation thus provides a very attractive entry point for investors.
After taking into account various considerations, Primavera and Lanvin agreed to cancel the bonus pool for ABCP’s non-redeemable public shareholders. Indeed, on October 28, they decided to remove these provisions for non-redeeming shareholders and are currently in discussions to explore alternative non-redeeming incentives for certain holders.
The proposed business combination of Lanvin Group with ABCP is expected to close by the end of 2022, subject to customary closing conditions, including approval by ABCP shareholders and the listing of LGHL (Lanvin Group Holdings Limited) securities on the New York Stock Exchange. Upon completion of the transaction, the group’s businesses will operate under the Lanvin Group name. LGHL has applied for a listing on the New York Stock Exchange under the symbol “LANV”.
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Featured photo : © Lanvin