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Fosun to take control of Austrian stockings maker Wolford

China's Fosun International Ltd. on March 1 agreed to pay €32.6 million for a majority stake in Austria's Wolford AG, with an eye toward taking full control of the legwear and lingerie brand.

Fosun Industrial Holdings Ltd., a subsidiary of the Chinese conglomerate, will buy 2,543,694 shares, which is approximately a 50.87% stake in Wolford, from the main shareholder group at a price of €12.80 per share.

Also under the agreement, Fosun will provide Wolford with up to €22 million as part of a cash capital increase to strengthen the company's financial structure.

In addition, Fosun intends to offer Wolford's remaining shareholders €13.67 per share in a bid to fully take over the company.

The closing of the share purchase agreement and the general meeting for approving the cash capital increase are scheduled to take place in May, according to a March 1 statement by Wolford.

"We welcome the entry of a financially strong core shareholder which is experienced in the luxury sector and will enhance our access to Asian markets," Wolford CEO Axel Dreher said in the statement.

The brand's current key markets include the U.S., the U.K., Germany, France and Austria. In the 2016-17 financial year, its loss before interest and tax widened to €15.7 million from €2.9 million in the previous year, while revenue declined to €154.3 million from €162.4 million during the same period.

The Wolford deal adds to the growing fashion portfolio of Fosun, which has also invested in Germany's Tom Tailor, Greek jeweler Folli Follie and French luxury brand Lanvin.