Giordano Takeover Bid Fails to Reach Threshold
September 15, 2022
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Giordano International Intrinsic Value –
A takeover bid for control of apparel company Giordano($SEHK:00709) has fallen short, despite shareholders being given extra time to accept the offer. The offer has now lapsed.
Stock Price
On Wednesday, shares of Giordano International dropped 8.6% after a takeover bid failed to reach the necessary threshold. The stock opened at HK$1.6 and closed at HK$1.7. This is the second time that a takeover bid for the company has failed. In September, a group of investors led by Giordano’s founder, Peter Lau, made an offer to take the company private, but the offer was rejected by the board. If the offer is successful, Giordano will be delisted from the Hong Kong Stock Exchange.
VI Analysis – Giordano International Intrinsic Value
Company fundamentals are important indicators of a company’s long term potential. The below analysis on GIORDANO INTERNATIONAL’s fundamentals is made simple by the VI app. The intrinsic value of GIORDANO INTERNATIONAL shares is around HK$2.2, calculated by VI Line. This means that the current share price of HK$1.7 is undervalued by 23%.
Summary
The failed takeover bid by Giordano International has caused the stock price to move down the same day. This is because investors are worried that the company will not be able to successfully turn around its business and make a profit. The company has been trying to sell itself for years, but has been unsuccessful. The failed takeover bid has made it even more difficult for the company to find a buyer.
