Apparel chain Giordano falls as shareholder seeks management reshuffle

Giordano International

06/02/2024 05:52

** Shares of Giordano International Ltd  0709.HK  fall 7.4%
to HK$1.89, their lowest since Jan 23     
    ** Stock of the apparel retail chain operator set to extend
losses for a third straight session, if trend holds
    ** Giordano says it received requisition from shareholder   
 Sino Wealth International, which holds 24.06% stake, to remove
Peter Lau from his position as the CEO, and appoint Colin
Melville Kennedy Currie as the new chief executive with
immediate effect   
    ** Sino Wealth also proposes to appoint Sonia Cheng and
Christopher Cheng as non-executive directors of the company and
Victor Huang as an independent non-executive director, but
provided no further details 
    ** The board is seeking legal advice on appropriate course
of action to be taken - Giordano 
    ** In September 2022, Giordano said a takeover offer by a
major shareholder lapsed on receiving insufficient shareholders
acceptance, failing to meet the 50% shareholder threshold
    ** "We think the requisition is an aggressive move and there
could be further changes to the management team. We expect the
stock price to be more volatile in the near term," says
brokerage UOB Kay Hian 
    ** Hang Seng Index  .HSI  surges 3.6%
    ** Giordano stock down 26.9% YTD, as of last close  

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))