US: Kenneth Cole to be taken private by founder
Kenneth Cole Productions is set to be taken private by founder Kenneth Cole after the company's board approved a US$15.25 per share offer yesterday (6 June).
The offer represents a slight increase on the $15 per share offer he made for the company at the end of February. It is a 17% premium on the company's share price on 23 February, the last trading day before Cole's proposal.
Cole holds a 46% stake in Kenneth Cole Productions and will acquire the company through KCP Holdco, an entity created for the acquisition.
When Cole made the offer, he said the transaction would ensure the company has the flexibility and structure to "successfully navigate our market environment in the years to come" as recent market changes have created a "sharply competitive landscape".
"I believe it is now more important than ever to embrace a more entrepreneurial perspective where we are all incentivised to grow and develop our company's products, brand and business with a longer-term perspective.
"I believe it is increasingly difficult to develop this type of culture in a public company context, where the public markets are increasingly focused on short-term results.
"I am convinced that private ownership is in the best interests of the business and the organisation and that this proposal is in the best interests of the shareholders," said Cole.
The following is a round-up of apparel and footwear news from the world's local media. just-style has not checked these stories so cannot guarantee their accuracy....
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