16 Feb 2018: Noni B has entered the race to become a financial...

16 Feb 2018: Noni B has entered the race to become a financial saviour for the struggling Specialty Fashion Group, which is looking for a white knight to survive.
A bid from Noni B would be a further step in the corporate resurrection of former Babcock & Brown executives Phil Green and Trevor Loewensohn, who now operate the investment vehicle Alceon. Alceon is the largest shareholder in Noni B and its share price rise in the past two years has been remarkable, as the rest of the retail sector struggles. In March 2016, the stock was trading around $1. The company closed yesterday at $2.18. Alceon is thought to have bought in around the 50c mark.
Noni B operates about 600 stores across the country and expanded sharply after its 2016 purchase of Pretty Girl Fashion, which owned 370 Rockmans, BeMe, W Lane and Table Eight brands. It was owned by Consolidated Press Holdings and James Packer assumed control of about 9.7 per cent of Noni B following the deal.
Mr Packer sold the stake worth $10 million to domestic institutional shareholders and Alceon is Noni B’s largest investor with its 40.2 per cent holding. LHC Capital is second with a 12 per cent stake.
DataRoom understands that Noni B has emerged as a potential buyer of Specialty Fashion Group and is in competition with a buyout led by Gary Perlstein and Geoff Levy. They reportedly have put forward an offer to buy City Chic within the retailer’s stable — said to be by far the most lucrative of its brands, which also include Millers, Katies, Rivers, Crossroads and Autograph. Mr Perlstein was the chief executive of Specialty for 14 years while Mr Levy was on the board.
One option available to Noni B is a scrip-based bid, which observers say would give its shareholders upside in the recovery of Specialty Fashion.
Timing on bids for Specialty Fashion is expected to become clearer in the next week, with the sales process being run by Luminis. The company also has appointed FTI to help with a potential restructure.
Despite its need to be essentially rescued, Specialty Fashion’s fortunes have risen sharply this year. It closed 2017 around 13c, but has rallied to 28c, meaning its market capitalisation is now almost $53m.