NEW YORK (Kyodo) Jones Apparel Group Inc., a U.S.-based apparel maker, said Wednesday it intends to accept Fast Retailing Co.'s offer to acquire its wholly owned subsidiary Barneys New York Inc. for $900 million, or about ¥106 billion.
Jones said it has received a revised offer from Fast Retailing of Japan, operator of the Uniqlo casual clothing chain, and the Jones board of directors has determined that Fast Retailing's offer constitutes a "superior transaction" under the terms of an agreement with Istithmar, a Dubai-based private equity firm.
"Jones has transmitted to affiliates of Istithmar a written notice containing the material terms of the Fast offer and expressing the company's intention to accept the Fast offer," Jones said in a statement.
In late June, Jones announced an agreement to sell Barneys to Istithmar for $825 million. The agreement allows Jones to consider other buyout proposals for Barneys from third parties until July 22.
On July 2, Fast Retailing proposed acquiring a 100 percent stake Barneys New York for $900 million.
Jones said it will be entitled to end the agreement with Istithmar unless the private equity firm makes an offer that the Jones board of directors determines "to be at least as favorable to the company as the Fast offer" during the three business days from Wednesday.
Jones would be required to pay Istithmar a termination fee of $22.7 million.
