Specialty Fashion, the owner of Millers, Katies, Crossroads, Autograph, City Chic and Rivers, is under a takeover offer.
The fashion retailer confirmed it has received a confidential proposal from a Middle Eastern investment company to privatise the company at $0.70 a share cash.
A short time ago, the shares were up 25% to $0.65.
“The group has been in discussions with the counter party for a period of time in relation to a potential transaction,” Specialty Fashion told the ASX in a statement.
The bidder hasn’t been named but the company says it has granted access for due diligence.
Specialty Fashion Group is being advised by Luminis Partners as financial advisor and Arnold Bloch Leibler on legal.
The company’s profits have been dragged down since it bought Rivers, the warehouse-style clothing retailer, in 2013.
Sales revenue for the whole company rose 4.4% in 2016 to $826.2 million, included an underlying loss of $21.6 million attributable to Rivers.
The company posted a net loss for the year of $2.2 million.