In a report to the Tel Aviv Stock Exchange (TASE), Castro Model Ltd. (TASE: CAST) today confirmed that it was negotiating with Top Ten Fashion Accessories, Carolina Lemke, and ISS Fashion, shareholders in Hoodies, to buy a stake of up to 50% of Hoodies from them.
Castro emphasized in its announcement, "No agreement and/or memorandum of understanding between the company and those companies and/or their shareholders has been signed," adding, "Signing of a binding agreement between the parties is subject to the completion of the negotiations and the formulating of commercial agreements, and to a legal and accounting due diligence to the company's satisfaction."
Castro also stated, "The company's position is that there were good reasons for delaying the announcement of the negotiations until now, among other things because the company believes that such an announcement could have prevented completion of the transaction."
"Globes" reported in June that the Hoodies group was negotiating to sell 25% of its shares, and that contacts with the Castro chain were taking place, three years after previous negotiations between the parties broke down.
The Hoodies group includes the Basic Hoodies fashion chain, the Top Ten accessories chain, the Carolina Lemke sunglasses chain, the Accessories international chain (acquired by the group from Yael and Eyal Fishman a year ago for NIS 5 million), and the Urbanica discount fashion chain.
Hoodies CEO Yossi Gabison, the key figure in the group, who holds a golden share in each of the chains, told "Globes," "There were negotiations, and the value of the deal is NIS 430 million without Urbanica. Urbanica is not part of it."
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2016
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