Orchestra-Prémaman appeals to Destination Maternity shareholders
At the end of September, Orchestra-Prémaman wrote a letter to the shareholders of the Destination Maternity Corporation, inviting them to "take time to think" ahead of their vote at the US maternity wear specialist's AGM, scheduled for 19th October.
In the letter, the French children's and maternity wear specialist, owner of a 13.8% stake in Destination Maternity, urged the latter's shareholders not to renew the mandate of their current directors, whose performance it judges as disappointing. "It would be a mistake for the shareholders to reward these mediocre results by re-appointing the [current] directors (...) The corporation has missed out on key targets several times, and has presented its financial information in a less than clear fashion," wrote Orchestra-Prémaman.
A few months after the failed merger between Orchestra-Prémaman and Destination Maternity, officially due to regulatory opposition in the USA, Orchestra, which recorded a net loss of €33.6 million in its latest fiscal year, has therefore clearly signalled it wants to have a greater influence on Destination Maternity's future. It is worth remembering that their merger would give rise to a children's products specialist with a combined revenue of $1.1 billion.
Two previous merger attempts between the groups had failed, one at the end of October 2015, the other in February 2016.
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