Perry Ellis shareholders vote in favor of George Feldenkreis deal
today Oct 19, 2018
Two months after Perry Ellis International, Inc. called off talks with Randa Accessories, endorsing a take-over bid from founder and second-largest shareholder George Feldenkreis, the apparel company’s shareholders have approved the proposed transaction with a vote.
75% of outstanding shares not owned by affiliates voted in favour of the merger agreement in a special meeting held on Thursday.
Under the terms of the current deal, unaffiliated shareholders in the company will receive $27.50 per share in cash upon closing, which values Perry Ellis at around $437 million.
Randa’s proposal had offered $28.90 per share in August, valuing the group at almost $460 million, but the accessories company’s hopes were scuppered when a major Perry Ellis lincensor refused to accept its acquisition of the company.
Perry Ellis’ revenues slipped 3.5% to $199 million in Q2, with the company reporting a net loss of $3.3 million in the period.
The final result of the shareholder vote on the Feldenkreis transaction will be verified by First Coast Results, Inc., the designated independent inspector of elections, and will be filed with the US Securities and Exchange Commission as soon as possible.
Perry Ellis is expecting to close the deal with Feldenkreis in the coming days.
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