Bondholders in French fashion group SMCP, the owner of labels such as Sandro and Maje, are expecting first-round, non-binding bids for their 37 percent stake in the company by mid-May, said two people with knowledge of the transaction.

The bondholders, which include asset manager BlackRock and private equity firm Carlyle, appointed investment bank Lazard Freres to advise on the sale that kicked off in March.

The 37 percent stake is worth around €227 million ($251 million) based on SMCP’s market value of €613.8 million at Monday’s close. The company’s shares rose 2.57 percent on Tuesday.

Potential buyers include private equity funds and other fashion retailers, said one of the people, who declined to be identified as the information is confidential.

The interested parties are taking into consideration that their acquisition of the stake would trigger a general takeover of the entire company and therefore are assessing the deal on that basis, the person added.

Rothschild & Co is advising SMCP in the sale, the company said in March.

Alastair Beveridge and Daniel Imison of AlixPartners, who are acting as an intermediary for the bondholders, did not respond to a request for comment.

SMCP referred Reuters queries about the sale to AlixPartners, which they said is in charge of the process. Neither Lazard nor Rothschild responded to requests for comment.

The bondholders became equity owners in the French company after European TopSoho, a unit of Shandong Ruyi, failed to meet a debt obligation of €250 million ($265.95 million) exchangeable for shares in SMCP in 2021.

The Chinese conglomerate, which embarked on a buying spree in 2015, acquiring labels including Aquascutum, Cerruti 1881 and Savile Row tailor Gieves & Hawkes, sought to build an empire to rival that of luxury behemoth LVMH, but struggled under the debt of its purchases.

SMCP reported €1.2 billion in sales for 2022, up 16.1 percent year-on-year, and €266.6 million in adjusted earnings before interest, taxes, depreciation and amortisation, up 8.5 percent from 2021.

By Kane Wu; Editors Sharon Singleton and Christopher Cushing

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SMCP Shares Rise as Bondholders Begin Stake Sale

Shares in contemporary French fashion group SMCP rose in early morning trading after bondholders launched a sale process for a 37 percent stake in the company, potentially clearing the way for a full takeover.