FAST NEWS: SPAC Shareholders Approve Lanvin Listing Plan

The Latest: Lanvin Group, the luxury retail arm of Fosun International (0656.HK), announced on  Monday that shareholders of Primavera Capital Acquisition Corp. (PV.US) have approved a reverse merger plan that will allow Lanvin to list on the New York Stock Exchange.

Looking Up: The approval paves the way for Lanvin’s shares to start trading on the New York Stock Exchange on Dec. 15 under the ticker symbol “LANV.” The listing, using a special purpose acquisition company (SPAC), will give Lanvin a fundraising platform for its future expansion.

Take note: Lavin’s debt-strapped parent Fosun lacks luxury fashion expertise, and its Chinese background could cast a shadow on Lanvin’s future success.  Lanvin’s sales in Europe and North America have been growing, but its China business is still slow and the company is losing money.

Digging deeper: Lanvin Group manages luxury brands including Lanvin, Sergio Rossi, Wolford, St. John Knits and Caruso, all acquired by Fosun in a series of purchases over the last few years. Headquartered in Shanghai, the company operates in over 80 countries with more than 300 retail stores, with a stronghold in Europe. Fosun announced its plan to list Lanvin in March this year through a SPAC merger backed by Primavera, a major Chinese private equity firm. In November, Lanvin cut its pre-merger valuation from $1.25 billion to $1 billion, citing considerations such as currency depreciation and valuation of its peers.

Market Reaction: Primavera Capital Acquisition’s shares, which will be renamed as Lanvin Group later this week, rose 1.9% in Monday trading in New York to close at $10.06, taking them above the $10-per-share price from the SPAC’s January 2021 IPO.

Reporting by Chan Ka Po

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