SMCP: favorable court ruling, speculation grows

(CercleFinance.com) - SMCP shares gained more than 10% on Monday on the Paris Bourse, with speculation growing on the stock in the wake of a favorable court ruling in the UK.


After gaining up to 16% this morning, shares in the parent company of Sandro, Maje and Claudie Pierlot are trading in volumes representing almost three times their daily average of recent sessions.

This was also one of the best stock market performances on the Paris market on Monday.

The share price rose after the British courts ruled that the transfer in 2021 of a 15.9% stake by European Topsoho, its former Chinese reference shareholder now in bankruptcy, to Dynamic Treasure Group (DTG), a holding company managed by the daughter of European Topsoho's owner, was illegal.

In detail, the Court of Appeal in London rejected DTG's requests to appeal against the decision of the British High Court last July.

In a press release, SMCP points out that this court decision is no longer subject to appeal.

This court decision is a setback for European Topsoho, SMCP's former majority shareholder, which will have to hand over its 15.9% stake to its creditor GLAS, which intends to seek its forced return.

Taking into account its existing stake of almost 29% and a residual 8% share in European Topsoho, GLAS will now be in a position to control almost 53% of SMCP's capital.

While speculation has been rife for some time, GLAS will now be in a position to find a potential buyer for SMCP, leading some analysts to suggest that 2024 could mark the 'end of the tunnel' after three years of shareholder disputes that have heavily penalized the business.

While the textile market is in a difficult state, SMCP is trading at valuation levels that do not reflect its respectable operating performance in this context", as Oddo BHF's teams recently pointed out.

Although the share price has rebounded by 28% over the past month, it has lost over 83% in the last five years.

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