June 12 (Reuters) - Private equity firm Sycamore Partners Said it was interested in acquiring apparel retailer Express Inc and asked the company to allow it to perform due diligence.
The private equity firm on Thursday disclosed a stake of about 9.9 percent in the company, according to a regulatory filing. (link.reuters.com/huv99v)
Express’s shares rose 22 percent to $16.55 in extended trading. The stock closed down nearly 3 percent at $13.55 on Thursday, valuing the company at $1.14 billion.
“We would like to perform confirmatory due diligence to determine a definitive valuation of the company,” Sycamore said in a letter to the company’s board, adding it would take 30 days to complete its due diligence, obtain financing commitments and submit its offer.
Express has warned last month that it could post a loss in the current quarter due to high inventory and slow traffic. (Reporting by Shailaja Sharma in Bangalore; Editing by Savio D‘Souza)