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- International jewellery retailer Lovisa (LOV) has been issued an exercise notice after its recent acquisition of German jewellery wholesaler beeline
- Executing the put option will allow beeline GmbH to sell shares in beeline France to Lovisa after consulting with its employee works council
- An additional 30 beeline France stores are now included as per the existing share agreement after consultations were announced has completed
- The market has responded modestly to the announcement and company shares are up 2.02 per cent trading at $10.59 each
Lovisa (LOV) has been issued an exercise option to acquire 30 additional stores regarding its acquisition of European jewellery wholesaler beeline group in November.
The put option allows beeline France to sell its company shares to Lovisa now mandatory consultation with the company’s work council is complete.
Lovisa (LOV) will now expand its French retail network by 30 stores at €10 euros (around A$16.20) under the put option.
As per the initial agreement, beeline expects to ensure an entity cash level of €1.95 million (about A$3.16 million). Lovisa initially purchased beeline’s European network of 114 retail stores across seven countries on November 13.
The execution takes the purhcase price for all beeline’s seven countries to €70 (about A$113.55). No financial debt will be taken on as a result of the transaction.
Lovisa Managing Director Shane Fallscheer said he is pleased to double the ASX-lister’s store network in the French market.
“It will give further momentum to our French store rollout,” he said.
“We are very pleased that we have been able to add the French beeline locations to this transaction.”
Restrictions on French retail trading hours have been lifted as at November 28, allowing the company’s existing 24 stores to reopen.
Lovisa has over 400 stores operating internationally.
Company shares are up 2.02 per cent, trading at $10.59 each at 9:46 am AEDT.
