Fox Wizel Ltd., the Israeli fashion chain store, said that its online subsidiary Terminal X has signed an agreement for a strategic investment from Danish firm Heartland A/S, the investment vehicle of billionaire businessman Anders Holch Povlsen and the largest shareholder of British fashion and cosmetic retailer ASOS.
According to the agreement, Heartland will invest $21.7 million in Terminal X for an 8% stake, and at a valuation of $250 million pre-money, Fox said in a filing to the Tel Aviv Stock Exchange on Sunday.
The strategic investment comes as Terminal X is planning an initial public offering of shares on the Tel Aviv stock Exchange.
As part of the deal, Heartland will acquire additional shares of the company at 85% of its market price, once shares are issued on the Tel Aviv Stock Exchange, bringing its stake to 10.1%. the filing said.
The company said that there is no date yet for the timing and other terms for the initial public offering of shares.
Holch Povlsen has significant holdings in a variety of industries, including fashion brands and leading e-commerce fashion websites globally, including German websites About You and Zalando, Fox said in the filing.