2 min. reading

Zalando Snaps Up ABOUT YOU in €6.50-per-share Fashion Power Play

One of the biggest online retailers of fashion in Europe, Zalando, a German company, formally began its takeover bid for rival ABOUT YOU yesterday.

Zalando Snaps Up ABOUT YOU in €6.50-per-share Fashion Power Play
Source: Depositphotos

Deal Terms Feature Premium Offer and Strong Stakeholder Support

The offer represents a major step in the consolidation of the European fashion e-commerce market and has already been approved by BaFin, the German financial regulator.

Zalando is paying ABOUT YOU shareholders €6.50 per share as part of the deal, which is a significant premium over the going rate. In particular, this is a remarkable 107% premium over the three-month volume-weighted average share price from December 10, 2024, and a 12% premium over the median analyst target price of €5.80.

Notably, Zalando has already established a solid position in this deal, with backing from important investors such as the Otto Group, Otto Family, HEARTLAND, and the three founders of ABOUT YOU. Zalando has already gained control of almost 80% of the company’s shares thanks to these agreements.

Shareholders of ABOUT YOU have until February 17, 2025, to accept the offer.

Zalando Acquisition Timeline and Board Support

The offer has received positive feedback from ABOUT YOU’s management and supervisory boards, which advise shareholders to accept it.

Subject to routine regulatory approvals, the transaction is anticipated to close in the summer of 2025. It’s crucial for minority shareholders to understand that the takeover can proceed without a minimum acceptance threshold.

For precise instructions and deadlines, shareholders who are interested in tendering their shares should get in touch with their custodian banks.

Expected Market Impact and Synergie

Given that it brings together two significant players in the fashion e-commerce market, this acquisition has the potential to drastically change the dynamics of the European market. The businesses anticipate synergistic benefits from potential collaboration in a variety of fields.

 

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