Italy's Safilo takes 25% stake in Inspecs

(Sharecast News) - Italian eyewear company Safilo said on Thursday that it has taken a 25% stake in AIM-listed Inspecs for about £21.7m. News of the stake came just days after Safilo said it would not make a rival offer for Inspecs, after the UK company accepted a £85.4m bid from private equity firm Risk Capital and property developer Ian Livingstone.

Safilo said in a brief statement: "This equity stake reflects Safilo's confidence in Inspecs' long-term prospects, providing the group with a strategic opportunity in the company's future developments."

Safilo announced last month that it had made an initial approach to Inspecs about a potential acquisition of its German businesses, Eschenbach Group and BoDe. In addition, it subsequently made two non-binding possible cash offers for the whole company. Both approaches were rejected.

No financial details were disclosed, but Inspecs said the board rejected the proposals "on the basis that they were lower than those received from H2 and the consortium, and because they fundamentally undervalued the company".

H2 refers to UK investment firm H2 Equity Partners.