(Alliance News) - OVS Spa announced Tuesday that it has signed a letter of intent with the shareholders of Goldenpoint Spa with the aim of developing a possible industrial partnership.

Goldenpoint counts on a sales network of about 380 stores located in prestigious locations in major historical centers and shopping malls in Italy and a turnover of nearly EUR100 million.

"The rationale of the transaction is to accelerate growth in a segment in which OVS already boasts relevant expertise and an important market share thanks to sales made inside its stores," OVS explained.

The partnership is aimed at improving Goldenpoint's performance by strengthening its current merchandise offering and obtaining synergies from sharing the OVS group's supply chain as well as developing new stores.

The essential terms of the letter of intent envisage a possible initial investment by OVS in Goldenpoint through the simultaneous acquisition of a minority stake and the underwriting of a financial instrument that, in the medium term, would, at OVS's discretion, allow it to be converted into a controlling stake. On the remaining stake, the assignment of put & call options in favor of the parties, exercisable within time windows to be determined, may be envisaged.

Finalization of the arrangements remains subject to the successful completion of due diligence activities and other typical conditions for this type of transaction.

OVS stock closed Tuesday down 2.2 percent at EUR2.19 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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