Authentic Brands Group has recently made an announcement in regards to striking a deal with Ted Baker, a UK fashion chain.
A $254 Million Deal
The sources confirm that Authentic Brands Group, a major retail conglomerate that owns multiple businesses is acquiring Ted Baker.
Authentic Brands Group is already the owner of major brands such as Juicy Couture, Forever 21, and Reebok.
The group is known for owning multiple retail brands and this time, the conglomerate is all set to buy Ted Baker. Ted Baker is a UK fashion chain that is also popular throughout the world.
It has been confirmed that Authentic Brands Group is in the process of acquiring Ted Baker. For this purpose, Ted Baker is aiming to finalize the deal at a whopping acquisition fee of £211 million.
As of now, the £211 million amount translates to approximately $254 million.
An All-Cash Deal
The inside sources have confirmed that the Authentic Brands Group will be finalizing the deal with an all-cash deal. The company will be paying 110 pence per share.
However, the company has already added an almost 18% premium to the closing trading price of Ted Baker’s share from Monday.
Ted Baker is already a public brand listed on the London Stock Exchange.
Ted Baker Favours the Deal
According to the officials at Ted Baker, they are going to hold a voting session among the board members. However, everyone on the board of directors is happy with Authentic Brands Group approaching them for the deal.
Therefore, at the voting session, all directors will vote unanimously in favor of proceeding with the deal.
Furthermore, they will also suggest the same to the shareholders. This will be all in the favour of shareholders and the company if a major conglomerate acquires them.
Ted Baker to Operate under ABG
According to the officials at Ted Baker, even when the deal is complete, they will continue operating under ABG. However, Ted Baker will become a completely separate entity and it will be working independently.
Still, ABG will control the company, as it would continue operating and managing its wholesale business, e-commerce operations, and stores.
The deal also means that the Authentic Brands Group will also own other small companies operating for Ted Baker.
Ted Baker’s Future is Now Clear
For a while, the stakeholders had been very concerned and uncertain about the future of Ted Baker. They were not clear what would happen to the company in the near future and the speculations were rising constantly because of the uncertainties.
The latest deal has helped clear out these uncertainties and has pointed Ted Baker in the right direction.
Following the announcement, the share prices for Ted Baker have dipped 0.17%, losing $0.19 in value and moving down to $108.81 per share.
