Australia's Oroton Group accepting sale offers
Australian leathergoods and accessories retailer Oroton Group said on Tuesday it is considering a sale of the company, following expressions of interest that could see it explore new ownership options.
Oroton will receive some $3 million in credit support from its major shareholder and former director Will Vicars, who holds an 18.2% share, who stepped down from his post last month.
"The terms on which the major shareholder and his controlled entities will, if necessary, advance up to $3 million available to the company pursuant to this agreement are to be finalised," Oroton said in a statement on Tuesday.
Oroton said several suitors have expressed interest, but failed to comment on specifics, saying the changes could involve a sale, refinancing of debt or a recapitalisation of the firm -- whatever serves the group best.
"The strategic process will be focused on maximising value for the company and its stakeholders," the company said.
"It is premature to comment in detail on potential structures, terms or outcomes."
The news sings a more pleasing tune for the luxury handbag brand, which just last month hired investment bank Moelis & Co to assist it in conducting a strategic review. In May, Oroton saw its shares plunge to a near 18-year low on a sharp decline in sales and earnings.
Oroton said its previous guidance for underlying full-year 2017 earnings before interest, tax, depreciation and amortisation remains unchanged at A$2 million ($1.5 million) to A$3 million, adding "market conditions remain very competitive and challenging, and difficult to forecast".
Additional reporting by Reuters and AAP
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