Naked Brand (NASDAQ:NAKD) stock is soaring today on news of a merger with Bendon Limited.
Naked Brand and Bendom Limited officially completed their merger today. This comes after shareholders of NAKD voted in favor of the merger on June 11, 2018. The combination brings together both companies unique clothing lines under one name.
The merger has both Naked and Bendon acting as wholly-owned subsidiaries of the new company Bendon Group Holding Limited. This company has also been renamed to Naked Brand Group Limited.
As a result of the merger, Carole Hochman is taking over as the company’s Executive Chairman. She is also acting as the CEO of the Naked subsidiary. Justin Davis-Rice is the new CEO of the Naked Brand parent company.
“We believe this merger will enable the combined company to strengthen its global industry leadership and continue to drive growth over the long-term,” Justin Davis-Rice said in a statement. “Through the use of the U.S. capital markets, we anticipate having financial flexibility to expand distribution networks and further develop our businesses as well as acquire complementary brands.”
The merger also had shareholders of the companies exchanging old shares for new ones. This had holders of the old shares exchanging them at a rate of one old share for 0.2 of the new NAKD shares.
This brings an end to the merger effort of the two companies, which has been going on since the news was announced back in May 25, 2017.
NAKD stock was up 64% as of Wednesday afternoon.
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As of this writing, William White did not hold a position in any of the aforementioned securities.