SMCP founders and executives hold 10.3 percent of the capital after the conversion of preferred shares

Business

Sandro store in Dubai. Credits: FashionUnited.

Paris - Around a hundred "executive and managerial executives" of SMCP (Sandro, Maje, Claudie Pierlot), including its founders Evelyne and Ilan Chétrite and Judith Milgrom, hold 10.3 percent of the capital of the textile group following a conversion of preferred shares, according to a press release on Friday.

Between 2016 and 2017, the group, which also owns the De Fursac brand, "exceptionally allocated" nearly 1.3 million "preferred shares" with a nominal value of 1.10 euros to 98 senior executives and managers of SMCP, the company explained in a press release.

Among the beneficiaries were Evelyne Chétrite, Judith Milgrom and Ilan Chétrite, "founders and deputy general managers" of the company. These shares "were convertible by their beneficiaries" into just over 5 million ordinary shares on January 1 of each year starting January 1, 2019 and ending January 1, 2025.

The group's share price was 3.66 euros when the markets opened on January 2. The company's capital is now made up of 78,326,898 ordinary shares. "Updated information on the related voting rights will be published on the company's website on January 6," says SMCP. At the end of this transaction, "the founders and managers of SMCP hold 10.3 percent of the capital and 14.7 percent of the voting rights of the company," but "it is anticipated that the holders of ordinary shares resulting from the conversion (...) will proceed with the sale of these ordinary shares before December 31, 2025, taking into account the applicable tax regime."

The group's shareholding has been the subject of a legal battle between the former majority shareholder European TopSoho, owned by the Chinese group Shandon Ruyi, and its creditors who have become majority shareholders of SMCP.

Through the Glas entity, they now hold 28.8 percent of SMCP's capital and are also contesting the sale in 2021 of 15.9 percent of the capital to an entity incorporated in the British Virgin Islands. The British courts confirmed the nullity of this sale at the beginning of September, and SMCP then declared that Glas intended to "request the forced restitution" of this capital, held in Singapore. (AFP)

This article originally appeared on FashionUnited.FR. It was translated to English using an AI tool called Genesis and edited by Rachel Douglass..

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