Embattled Hamburg-based fashion chain Tom Tailor does not want to sell itself to its Chinese majority owner Fosun too cheap. But the company is not completely against it either. From a strategic point of view, Fosun’s takeover bid is a welcome move, the company’s executive and supervisory boards said on Thursday in Hamburg. But the offer of 2.31 euros per share is “financially inadequate”, and does not reflect the true value of Tom Tailor, CFO Thomas Dressendörfer said. Fosun had previously offered just 2.26 euros per share.

But the board abstained from issuing a recommendation regarding the acceptance of non-acceptance of the offer. Fosun’s offer could be a good opportunity for risk-averse and short-term oriented shareholders, said Dressendörfer. However, the company’s reality could change in the medium to long term. If the sale of the Bonita brand goes through as planned, and ongoing negotiations with banks are successful, there is clear potential for its shares to grow, he said.

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Fosun is trying to buy Tom Tailor for about 100 million euros. The Chinese firm has had an interest in the German clothing brand since 2014. Fosun is a privately-owned industrial and commercial conglomerate with headquarters in Hong Kong. The company has made several investments in European clothing firms and acquired a majority stake in Austrian hosiery manufacturer Wolford last year.