(Yicai Global) Feb. 19 -- Fosun International will take 3.85 (3.8495) million newly-issued shares of German clothier Tom Tailor for EUR2.26 (USD2.56) per share -- a 4.82 percent premium over the market rate -- for EUR8.7 million (USD9.84 million) in total.

It will also offer a voluntary public takeover bid to its shareholders to acquire all equities not directly held, the Shanghai-based conglomerate, which already claims 28.89 percent ownership of the German garment seller, said in a statement today.

Fosun now owns 11.12 million of Hamburg-headquartered Tom Tailor's shares. It projects a stake of slightly over one-third post-purchase. The deal will go through in cash.

The voluntary takeover bid will unfold via a cash offer, with the price for each share the higher of EUR2.26 and the weighted mean value of Tom Tailor's stock prices in the local market in the three months before Fosun outed its voluntary public takeover bid, which must also get the nod from German regulators, per the statement.

Founded in 1962, the target is an international clothing company that focuses on mid-range leisure clothes through its Tom Tailor and Bonita labels.

Its array includes multiple varieties of fashion accessories and apparel suitable for different ages. Its brands sell in more than 30 countries around the world, with Germany, Austria, Switzerland, Southeast Europe and Russia its core markets.

Fosun is a Chinese private company that formed in 1992 which has diversified operations including medicines, real estate development, iron and steel, mining, retail, services and strategic investment.

Editor: Ben Armour