SMCP: Towards a resolution of the 15.5% capital dispute?
The wording may seem complex. But for SMCP's creditors, who have been united under the GLAS trustee since the beginning of this rocky affair pitting them against the family of the group's former Chinese owners, it could mean recovering the missing share of capital that "vanished" four years ago. At the time, European Topsoho, the 53% shareholder owned by Yafu Qiu, former chairman of SMCP's board of directors and head of the Chinese Shandong Ruyi group, had discreetly sold over 15% of the capital in the midst of a financial slump. An investigation revealed that these shares had become the property of a company called Dynamic Treasure Group, a holding company run by Chenran Qiu, daughter of Yafu Qiu.
Since then, legal proceedings have multiplied. After a British High Court ruling on the case a year ago, followed by a victory for GLAS on appeal, the proceedings were transferred to Singapore, where the shares are held. This time, the Singapore decision is once again in favor of GLAS. However, DTG still has the option of appealing and thus postponing the return of these shares.
Why are these legal issues important for a minority shareholding? Because GLAS brings together European Topsoho's creditors, who have been saying since the beginning of this affair that they don't want to be shareholders in a brand. They intend to sell their stake in the parent company of Sandro, Maje, Claudie Pierlot and Fursac, which generates annual sales of over €1 billion.
The return of their 15.5% stake would enable them to move forward with a project to sell their 53% stake, while the group's market capitalization stands at 356 million euros, with a share price of 4.55 euros a few minutes before the close of trading on the Paris Bourse on July 4. While at its peak, the share price had flirted with 25 euros per share in 2019, it was recently closer to 2 euros and has rallied in recent months, up 23% since the start of the year. The end of the legal battle would therefore probably mean the start of a project to sell off the 53% stake.
Financial backers, employees and partners of the French group are therefore keeping a close eye on the wording of DTG's potential appeal to Singapore.
This article is an automatic translation. Click here to read the original article.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
2 hours ago
- Euronews
EU Commission bewails 'unfair' Chinese Cognac duties
China's imposition of anti-dumping duties on European Cognac is "unfair" and "unjustified", a European Commission spokesperson said on Friday, underscoring a downtick in relations ahead of an EU-China summit scheduled for the end of July. 'China's measures are unfair, we believe they are unjustified, we believe they are inconsistent with the applicable international rule and are thus unfounded,' Commission spokesperson Olof Gill said on Friday. The Asian giant has announced anti-dumping duties of up to 34,9% over EU brandy for a period of five years starting from 5 July 2025, sparing some of the largest EU Cognac producers which had made minimum price commitments, such as Remy Cointreau, Pernod Ricard and LVMH's Hennessy. The Chinese launched an investigation into brandy last year in retaliation for tariffs imposed by the EU on Chinese electric vehicles. It was followed by the announcement of several other investigations into EU pork and dairy products, which have not yet been closed. Anti-dumping duties were also imposed in May on some EU industrial plastics. Gill added that the duties on EU brandy were 'part of a worrying pattern of China abusing trade defence instruments, starting and conducting investigations on the basis of questionable allegations and insufficient evidence, all this within a short period of time.' This blow to EU brandy comes as some media report that China has cancelled the second day of the EU-China summit scheduled for 24 and 25 July. The Commission's chief spokesperson Paula Pinho refused to confirm the cancellation, arguing that the summit's agenda 'has not been agreed yet' by the EU and China. Points of contention are increasing between the two, despite hopes for a diplomatic reset born of the jeopardy both sides face in the face of an ongoing tariff dispute with the US. The South China Morning Post reported on Friday that Chinese Foreign Minister Wang Yi told EU's top diplomat Kaja Kallas it did not want to see a Russian loss in Ukraine because it feared the US would then shift its whole focus to Beijing.
Local France
2 hours ago
- Local France
Where can I find France's €1 homes?
There's been widespread reporting on the '€1 homes' on sale in Italy, while Spain has also offered some similar schemes - both have the same aim; to encourage people to move to remote and under-populated regions and renovate old, derelict houses. While France doesn't have quite the same problems as its neighbours, there are areas that suffer from population drain, and some have begun offering €1 homes or other inducements to people to move there. Where are these schemes? In short - remote areas, you won't be finding a €1 home in Paris, the Alps or the Riviera. Advertisement As with Spain and Italy, the types of towns or villages that offer these are in under-populated areas. These tend to be in central France, the so-called 'empty middle' in sparsely populated départements such as Cantal, Creuse, Corrèze and Lozère. It's not only central France, however, the most recently announced scheme is in the town of Ambert in the mountainous département of Puy-de-Dôme in eastern France. Meanwhile several communes in the northern region of Hauts-de-France have offered a scheme where they give €5,000 to anyone who buys a home there. They tend to be in either villages or small towns that are a long way from the nearest major urban centre - so you will almost certainly need a car and you need to be unfazed by isolation, especially in the winter. Who are they for? In most cases the vendors of the €1 homes are the local authorities - although in some cases local authorities offer cash grants to people buying from private sellers. As you would expect from something paid for with public money, they come with strings attached. The exact conditions vary but the schemes are often restricted to first-time buyers and you will generally need to sign an agreement to stay there for a certain period of time, and sometimes also commit to making necessary repairs. You must also commit to living there full time - these offers are not open to second-home owners, or people who want to rent out the property to tourists. There is no stipulation that you must be French, although these types of arrangements tend to involve complicated legal agreements, so this probably isn't suitable for people who don't speak good French. Advertisement Even if you don't qualify for the €1 homes, they are a good indicator of areas where property is likely to be cheap. Are they really just €1? The purchase price is indeed €1, and that's also good news for the notaire fee (property buyer's tax), which is calculated as a percentage of the purchase price. But it's understood that these homes are generally not in good repair, and will need a significant budget for renovation. That's the case with most of the €1 home schemes around Europe, the properties on offer are usually old and either dilapidated or downright derelict. Advertisement But the French schemes tend to be a bit more formal and often in exchange for either a €1 home or grants and funding from local authorities you will have to sign an agreement to undertake certain works within a set time period. This can actually be helpful, as at least it gives you an idea upfront of what renovation budget you need, but this cannot be attempted by anyone who genuinely only has €1 to spend. Things to watch out for Properties of this type tend to be sold 'as seen', which makes it harder to back out if you later discover a major flaw. While property surveys are not common in France they're definitely recommended for this type of property in case there are major structural issues such as subsidence. If the property is very old and hasn't been renovated for some time it's likely that things such as electricity will no longer be up to the required code standard. Check whether the property has a septic tank - a lot of rural French properties do - if the tank is old it's likely that it won't conform to new standards introduced in 2012 , which means you will need to get a new one, at a cost of roughly €10,000. Also check whether you are in a conservation area or are covered by specific building codes such as the Loi Montagne - these can restrict the type of works you can do, and make things more expensive. The mairie should be able to tell you about local rules and standards. READ ALSO : Tips for renovating French property: 'Double your budget and make friends with the mayor'✎ OK, so where can I find the €1 properties? Unfortunately, there isn't a national database of €1 homes. They don't tend to make a splash in national media either, although local press will often report on them. The best place to look is local authority websites or Facebook pages - this will, however, be a long and tedious job of sifting through a lot of irrelevant village news before you find anything. But nothing worth having ever came easy!
LeMonde
3 hours ago
- LeMonde
China imposes a tax on cognac but limits its scope
The cognac industry can kick back and have a drink. On the eve of the deadline set for Saturday, July 5, the Chinese Ministry of Commerce announced on July 4 the imposition of average customs duties of 32.2% on imports of wine-based spirits from the European Union – meaning cognac. But companies that, during the proceedings, negotiated a minimum price agreement − with price increases estimated between 12% and 16% − will be able to avoid the new tariffs. On Friday afternoon, French President Emmanuel Macron welcomed the move as "a positive step toward ending a dispute that threatened our exports," while promising to continue dialogue with Beijing. This way out is expected to benefit 34 companies, including the three major French groups: the luxury giant LVMH, the market leader with its Hennessy brand; the spirits group Pernod Ricard, owner of Martell; and its rival Rémy Cointreau, known for the Rémy Martin brand. The outcome is likely to be much harsher for about 20 smaller cognac houses, which are being hit hard. In announcing its decision, the Chinese Ministry of Commerce specified that it was ending its anti-dumping investigation into European exports of wine-based spirits, which primarily affected cognac and therefore targeted France. Beijing had launched the investigation in January 2024, in retaliation for Brussels' decision to tax imports of Chinese electric vehicles into Europe. The standoff led to the introduction of provisional taxes on cognac in October 2024, with customs duties ranging from 35% to 39%. According to the Bureau National Interprofessionnel du Cognac (BNIC, the French national cognac trade body), amounts collected before the permanent tariffs take effect should be reimbursed.
