Esprit moves to end market speculation
Fashion retailer’s statement aims to calm markets
Hong Kong fashion retailer Esprit has moved to play down market speculation that a major announcement is on the way from the company.
In a statement made at the request of the Hong Kong Stock Exchange, the board of Esprit said there are “no negotiations or agreements relating to intended acquisitions or realisations” it needs to reveal under market rules.
The statement follows a big increase in trading volumes of Esprit shares. At the end of last week, Esprit chairman Michael Ying placed 35m existing Esprit shares on the market at HK$31.3 each.
The sale was four to five times oversubscribed, with strong demand from institutional investors.
Esprit said it was “not aware of any reasons” for the increase in demand for its shares other than the placing.
Esprit operates almost 600 stores in 40 countries, with the brand also sold in more than 6,000 stores through the company’s wholesale operation.
