SMCP SMCP SA

   By Joshua Kirby 
 

SMCP SAS said Friday that a bond trustee has taken a major part of the stake held by its majority shareholder, and has demanded the dismissal of all of the shareholder's directors from the board of the French fashion group.

Bond trustee GLAS has taken 29% of SMCP shares from controlling shareholder European TopSoho, a Luxembourg-based holding company of Chinese conglomerate Shandong Ruyi Technology Group, after it failed to redeem share-exchangeable bonds worth 250 million euros ($292 million) due in September, SMCP said, referring to a filing made by the trustee to the French capital-markets authority. Shandong Ruyi until now held a stake of around 53% in the company, acquired in 2016.

The company added that GLAS has appointed a receiver to sell the pledged shares to a third party, entailing a change in control at SMCP.

GLAS has furthermore demanded that a shareholders' meeting be held, including on the agenda the dismissal of all representatives of European TopSoho and Shandong Ruyi from the SMCP board, and the appointment of four new independent directors.

Earlier this month, SMCP said European TopSoho had begun legal proceedings against GLAS.

SMCP said it will convene a board meeting in the coming days to discuss the request. The company reiterated that the situation doesn't affect its own financing and operations.

European TopSoho and Shandong Ruyi didn't address a request for comment.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

October 29, 2021 06:17 ET (10:17 GMT)

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