Australia's City Chic soars after divesting Evans brand and exiting EMEA

City Chic Collective

04/08/2023 03:00

(Adds Citi comments, weekly move)
    ** Shares of City Chic Collective  CCX.AX  rise as much as
26% to A$0.605 - set for best day since March 2020, if gains
hold
    ** Stock hits highest level since Feb. 21
    ** After market hours on Thursday, fashion retailer said it
had divested its Evans business and EMEA inventory to AK Retail
Holdings
    ** Says under deal, AK Retail will pay co a total cash
consideration of 8 mln pounds ($10.18 mln) 
    ** Citi ups TP on co to A$0.49 from A$0.45, maintains
"neutral" rating 
        ** Says the EMEA exit was "necessary" given Evans'
disappointing performance 
  
    ** Morgan Stanley says divestment makes strategic and
financial sense and should be positive for stock 
    ** Stock is on track for its third weekly gain 
    ** As of last close, stock up 1.1% YTD


($1 = 0.7855 pounds)

 (Reporting by Himanshi Akhand and Poonam Behura in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))