Zalando headquarters in Berlin
German online clothing specialist Zalando said on Wednesday it had reached an agreement to buy its competitor About You for 1.1 billion euros to create a pan-European e-commerce platform.
Zalando is offering, in cash, 6.50 euros per share to About You shareholders, i.e. a premium of 107% compared to the average share price of the German online fashion retailer over three months. The title About You closed at 3.90 euros per share on Tuesday although it had been introduced at a price of 23 euros per share three and a half years ago.
Zalando lost 5.95% on Wednesday around 08:37 GMT while About You posted a record increase of 65.13%.
“The planned dual-brand strategy would significantly increase the group’s presence in pan-European markets,” said About You’s main shareholder, German retail group Otto.
The combined business of Zalando and About You aims to achieve an adjusted earnings before interest and tax (Ebit) margin of between 10 and 13 percent, Zalando said in a statement.
(Edited by Andrey Sychev and Kirsti Knolle, French version Bertrand De Meyer, edited by Kate Entringer)
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